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comment by HeroicGomez
HeroicGomez  ·  396 days ago  ·  link  ·    ·  parent  ·  post: Corporate debt is a ticking time bomb

As long as the Saudis keep covertly pounding VC into VC firms, which in turn keeps getting pounded into Tech, the boom will continue.

If/when that money dries up, it's all going to collapse.

And don't @ me about tech being one sector of the economy. At this point, its claws are in everything and drives everything.

kleinbl00  ·  396 days ago  ·  link  ·  

The issue outlined (loosely) in the article is that debt is used for buybacks, buybacks are used to raise share price, and a rising share price is used to promote market activity when really, it's government funds inflating share price without increasing productivity, employment or innovation.

Somewhere around here I got a link demonstrating that 38% of the value in markets right now is governmental cash infusions. Take out the infusions, take out the market.

HeroicGomez  ·  395 days ago  ·  link  ·  

Wow, that sounds familiar. Like a swap of credit, by default. Hope it works out for them in the long run!


kleinbl00  ·  395 days ago  ·  link  ·  

So long as you're not the bagholder you're fine.

Modern financial theory can be summed up as "never be the bagholder." Modern consumer-level investment can be summed up as "here take this bag."