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“Zero interest rate policy” is the answer to both of your questions. https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS W

“Zero interest rate policy” is the answer to both of your questions. https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS When did the Fed cut rates to zero for the first time? 2008. What happened with this company in 2008? > Expansion from books > In 2008, the founders, Jack Canfield and Mark Victor Hansen, sold the company to a new ownership group led by William J. Rouhana and Robert D. Jacobs.[17] Since then all new titles have been published by Chicken Soup for the Soul Publishing, LLC and distributed by Simon & Schuster.[1] Under the new ownership group, Chicken Soup for the Soul has expanded into other products besides books. The company markets pet foods under the brand Chicken Soup for the Pet Lover's Soul and a line of soups, sauces and other prepared foods under the brand Chicken Soup for the Soul.[18] ZIRP ending also happens to be the reason that Chicken Soup for the Soul Entertainment is facing bankruptcy. > On May 11, 2022, Chicken Soup for the Soul announced its intention to acquire Redbox for $357 million ($36 million in stock and $321 million in assumed debt).[28] The acquisition closed on August 11, 2022.[29] > On April 23, 2024, Chicken Soup for the Soul announced a $636.6 million loss in 2023, and warned that without any options to generate additional financing, the company may be forced to liquidate or pause operations, and seek a potential Chapter 11 bankruptcy protection filing. Let’s see when the Fed starting hiking rates > March 2022 > When did the Fed start raising rates? The Fed hiked interest rates a total of 11 times between March 2022 and January 2024.

freitzkriesler2 2y ago
Whoever down voted you is a fool. You precisely answered the question and reasons why.
jalapenos 2y ago
Good points. Even a DVD company could look like a good investment under ZIRP. Many were lured into the gamble that those good times would last forever.
SideQuark 2y ago
FEDFUNDs is the rate at which banks lend to each other only for overnight balancing of books; it is not the rate at which companies like CSFS can borrow money. > Let’s see when the Fed starting hiking rates >> March 2022 Except that is not true. Look at your own graph - it was raised continually from 2015 through fall 2019. And if ZIPR was somehow responsible for such a fall, then you'd see it across a ton more companies, since they all play in the same financial environment. Yet those are not there - 2022-2024 has been spectacularly good for companies. I think your ZIPR is a boogeyman looking for post rationalization. If you look at their SEC filings, you can see an actual reason: they invested in buying media companies, like Redbox, that have not panned out well at all. They bought Redbox thinking DVD rentals from corner stores was going to see a resurgence, and it has not, across many such companies. You can also see how these were financed from the SEC filings. Guess who is not there? That's right, ZIRP funding. All stock transfer for the buy has zero borrow from banks (which again, don't lend at Fed rates, and certainly not at that rate to a company buying an already failing Redbox). Unless you want to blame consumers preferring streaming over disks on ZIRP, your argument lacks merit in light of actual business filings and investor reports, none of which mention Fed boogeymen.
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freitzkriesler2 2y ago

Whoever down voted you is a fool. You precisely answered the question and reasons why.

jalapenos 2y ago

Good points. Even a DVD company could look like a good investment under ZIRP. Many were lured into the gamble that those good times would last forever.

SideQuark 2y ago

FEDFUNDs is the rate at which banks lend to each other only for overnight balancing of books; it is not the rate at which companies like CSFS can borrow money. > Let’s see when the Fed starting hiking rates >> March 2022 Except that is not true. Look at your own graph - it was raised continually from 2015 through fall 2019. And if ZIPR was somehow responsible for such a fall, then you'd see it across a ton more companies, since they all play in the same financial environment. Yet those are not there - 2022-2024 has been spectacularly good for companies. I think your ZIPR is a boogeyman looking for post rationalization. If you look at their SEC filings, you can see an actual reason: they invested in buying media companies, like Redbox, that have not panned out well at all. They bought Redbox thinking DVD rentals from corner stores was going to see a resurgence, and it has not, across many such companies. You can also see how these were financed from the SEC filings. Guess who is not there? That's right, ZIRP funding. All stock transfer for the buy has zero borrow from banks (which again, don't lend at Fed rates, and certainly not at that rate to a company buying an already failing Redbox). Unless you want to blame consumers preferring streaming over disks on ZIRP, your argument lacks merit in light of actual business filings and investor reports, none of which mention Fed boogeymen.

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