top | item 34859234

(no title)

aluminussoma | 3 years ago

0% Interest Rate Phenomena. Much of the funds come from extra capital sloshing around the system, looking for returns. Once bought out, some companies incur more debt (easy because of 0% interest rates) much of which goes back to the new owners as special dividends. Finally, once stripped to the bones, the company goes public again.

I can't wait until this vulturous business model gets smacked in the face by tighter financial conditions.

discuss

order

psychlops|3 years ago

Nice insight and agree with the sentiment. Get comfortable as I don't think we will see higher interests for a while.

tbihl|3 years ago

The Fed target interest rate is 4.75% after being 0.25% since the beginning of 2020. The days of free money firehose are done for now.

Am I somehow thinking of the wrong rate here? Heck, my savings account gives 3.5%, like when I was growing up.