American Economics Thread

[Fertorstar]

Still bankruptcies are increasing no matter how you look at it. That's objective evidence. Still higher than the last few years. If the last few years aren't "much" better than that means the last few years were also weak and it's getting weaker

All it means is that corporate bankruptcies filed simply reflect monetary policy moving from super easy money to super tight money in a year. Nothing more. Nothing less.

 

[MortyandRick]

All it means is that corporate bankruptcies filed simply reflect monetary policy moving from super easy money to super tight money in a year. Nothing more. Nothing less.

??? What do you mean nothing more? When corporations are not able to make a profit and only survive when there monetary easing and easy credit, that means the corporate foundation is not doing well. They can't rise interest rates to decrease inflation or other zombie companies will also collapse, pointing to the underlying instability of the economy. So in short the economy is weak. Lol

 

[vincent]

Stop arguing with sleepy

 

[MortyandRick]

Stop arguing with sleepy

Okey dokey

 

[Fertorstar]

??? What do you mean nothing more? When corporations are not able to make a profit and only survive when there monetary easing and easy credit, that means the corporate foundation is not doing well.

Because there are poorly performing corporates in any business environment, there will always be capital projects gone, and similar.

They can't rise interest rates to decrease inflation or other zombie companies will also collapse, pointing to the underlying instability of the economy. So in short the economy is weak. Lol

A lot of debt is floating rate and so any interest rate hike will set off a cascade. Covidflation caused rate hikes and the Fed is now easing but there are still substantial microeconomic consequences from the piking cycle - among those including higher servicing costs for highly leveraged corproates

 

[supersnoop]

SoftBank investing in Intel, the mavens also invested in wework and somehow didn’t make a mint when owning 5% of nVidia. Also possibly on the way to becoming an SOE like Amtrak…
Buy! Buy! Buy!