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A lot of different explanations here and they're probably all true as it is a combination: 1. Interests going up means less economic activity (at least how our
by TigerTeamX 4y ago
A lot of different explanations here and they're probably all true as it is a combination:
1. Interests going up means less economic activity (at least how our current financial system is setup)
2. Everyone else does it, so you can trim down without stigma.
3. We are hitting an economic recession and the companies remember how bad times can go so they want to prepare.
A more cynical thing is, as we are hitting this economic troubles ahead, things will most likely get cheaper.
If Google have more money they can buy more of their competitors and ensure to bigger marketshare for cheaper.
- lamontcg 4y agoInterest rates going up means higher interest rates on debt service. As commercial loans hit their maturity dates and those interest rates hike up the entities which have been barely skating by on low short term rates will be pushed into liquidation. Those failures will spill over into risk of contagion in the financial markets as we find out who has been underwriting bad loans this time. And yes "crisis brings opportunity" and its likely going to be a very good buying time for those with cash on hand near the bottom. Those who have burned up their cash will not get a seat when the music stops.
- TigerTeamX 4y agoExactly my thoughts but said a lot more eloquently.