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True. Iv heard the only reason large corporations stay afloat IS because the governemnt helps them. Theoretically, if left to its own devices, a corp can only get so big before collapsing in on itself.
I dont exactly understand it, so I can't be certain. But I am certain the government shouldnt be abiding any damn corperation for any reason.
Oh. Ha, well duh. That makes sense.
Thank you for this. I think I get it now. I was actually referencing this in some talks with friends over the weekend, so we all learned something :P
Basically, the feds artifically lowered intrest rates means their loaning out money the economy (our capital) can't really afford. Eventually, they'll have to either print more money to compensate, face a backlash of inflation(?), or both. In the end, that 20 year low intrest loan isnt enough to sustain their projected expenses because its a lie that has repercussions.
The value of that loan will crumble and never hit its inteded target. The value of that money just isn't really there.
Thanks! This is a good break down. Iv heard of artifically low intrest rates (still dont fully understand it lol) I know why bailouts are bad tho, and this really put it in a way I can understand it better.
Basically the dollar vote of the consumer has almost become irrelevant.
Coke can go woke and even tho sales plummet, they can still hold on and maintain somehow. Thanks to government and banking interference.
What we have is no longer capatalism. I guess its now corporatism.