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So if a company got a profit hike, reinvested all of it, then had a deflation shock, they might go bankrupt If they reinvested all of it, it wouldn't have coun
by didibus 3y ago
So if a company got a profit hike, reinvested all of it, then had a deflation shock, they might go bankrupt
If they reinvested all of it, it wouldn't have counted as profit. The study points out at outsized increased profit.
- astrange 3y agoThat just means the issue moves to the shareholders.
- didibus 3y agoYour thesis doesn't really make sense to me. You're assuming someone that is making outsized profit this year, somehow is gambling all of that profit and their existing money in some risky bet that depends on the continuation of greedflation, and if that stopped and their price gouging were forced to come back down to normal level, they'd lose their bet, and somehow that would be so catastrophic that the biggest most depended on juggernauts would collapse into bankruptcy causing a country wide recession?