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The fed by raising rates is trying to clean out these low-margin businesses by making them less attractive to investors. This means they will fire workers and
by narrator 4y ago
The fed by raising rates is trying to clean out these low-margin businesses by making them less attractive to investors. This means they will fire workers and stop buying goods which is supposed to bring down inflation.
Think about it, in the current environment, the choice becomes: 1. Invest in a low margin business or 2. just call it a day and buy Treasury bills at historically high interest rates and make a guaranteed state tax free return without having to work.