2 ms·
I think a very large percent of them had a nonzero value, but the issue is if you can get 4% guaranteed return on cash, vs risky 1% return on cash suddenly the
by maerF0x0 3y ago
I think a very large percent of them had a nonzero value, but the issue is if you can get 4% guaranteed return on cash, vs risky 1% return on cash suddenly the asset is worth less than before.
But if you can get unlimited money at 0% you might as well invest it on 1% return bets. You're still making money on others' money.
- lotsofpulp 3y agoI would have thought the issue was the lack of net income.
- maerF0x0 3y agoThe idea is so long as you have an expectation of future ROI you can amortize that future value into the present and sell off the present equity for current capital. People are incentivized to put in capital so long as the risk adjusted rate of return exceeds marginal alternatives (including just sitting on the cash in a 2-10% inflation rate environment)