3 ms·

LOL, we aren't even getting started yet!

• A4ET8a8uTh0 4y ago
  This is interesting. To be honest, I don't see recession as much as maybe attempts to trigger it by some companies ( right now, it is clear companies are poorly equipped to deal with empowered employees ). Yeah, easy money from FED is drying up for banks ( and various companies and rely on access to easy money from banks.. such as early tech ), but should that automatically mean crash? It can still happen. While I am certainly preparing for this possibility, I dislike various CEOs saying its coming and media trumpets putting it in bold letters.
  • mellavora 4y ago
    > should that automatically mean crash? No, not automatic. But it sure increases the likelihood. Especially after years of cheap money have allowed tremendous unproductive investment. It isn't just banks, it is every company with access to capital markets. Unproductive investment made sense when money was free ("easy money"), but when money starts to costs, those investments get closed down. And the people those investments employed become unemployed.
    • A4ET8a8uTh0 4y ago
      I think we are in agreement here. I found no issue with this logic.
  • yobbo 4y ago
    > Yeah, easy money from FED is drying up for banks It's impossible to know certainly how much and where it was having effect. Housing market was just one place, which caused a sort of wealth effect as households' equity increased. Stock buybacks might be analogous. These mechanics have been in play since 2010? Potentially alot to roll back.
  • ItsMonkk 4y ago
    20% of the Russell 3000 are considered Zombie companies. Without easy money they will be severely harmed and many will go under. And that 20% was based on numbers when debt was cheap, no doubt it's even worse as the rate increases keep coming.