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Most businesses I’ve talked to and worked with that borrow meaningful amounts are not so dependent on rates that increases of this much will meaningfully kill s
by vineyardmike 4y ago
Most businesses I’ve talked to and worked with that borrow meaningful amounts are not so dependent on rates that increases of this much will meaningfully kill sound businesses. Rate changes as quickly as they are is the dangerous part, because it requires throwing out a lot of their short term plannings. Businesses and business leaders that have been around since the 90s are used to interest rates in excess of the current amount.
The economy at large is much bigger concern and impact to businesses. Even land development would continue, with only minor hiccups.
- SQueeeeeL 4y agoI think Warren Buffett had a very related take. Basically, in America at least, real businesses which simply make a profitable product well, are no longer viable. The only viable businesses are those which have some "trick" which appeals to the capital owning class, I feel like crypto is a pretty good example of this in action. So we see this endless game of "large" "profitable" companies that are the equivalent of 90s vaporware, doing nothing but shuffling numbers around in a spreadsheet without creating value. But the government is terrified of any form of meaningful regulation (because so much campaign finance is tied into these zombie corporations)
- PubliusMI 4y ago