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So we’re going to fight mergers and acquisition’s when interest rates are so high they probably wouldn’t have happened anyway

• deleted 4y ago
  [deleted]
• nostromo 4y ago
  The effect on cheap money on anti-competitive practices is massive and almost nobody knows about it.
  • munificent 4y ago
    Count me as one of the people who doesn't know about it. Can you explain more?
    • ravel-bar-foo 4y ago
      I don't know about this specifically, but my guess is that when loans are cheap it is much easier to perform a leveraged buyout: taking out a loan on the assets of the company being acquired.
    • nostromo 4y ago
      It's dense, but here's a good paper on it: https://www.nber.org/papers/w25505 https://www.nber.org/papers/w25505 And here's a more accessible article about the relationship: https://www.chicagobooth.edu/review/how-low-interest-rates-can-hurt-competition-and-economy https://www.chicagobooth.edu/review/how-low-interest-rates-c...