Was just trying to explain to someone why everything is going to shit, specifically companies, and realized, I don’t fully get it either.

I’ve got the following explanation. The sentences marked with “???” are were I’m lost. Anyone mind telling me, if they’re correct and if so, why?

The past few years, central banks were giving out interest rates of 0% or even negative percentages. Regular banks would not quite pass this on, but you could still loan money and give it back later with no real interest payments.

This lead to lots of people investing in companies. As long as those companies paid out more money than those low interest rates, it was worthwhile. But at the same time, this meant companies didn’t have to be profitable, because they could pay out investors from money that other investors gave them???

This has stopped being the case, as central banks are hiking interest rates again, to combat inflation???

  • atticus88th@lemmy.world
    link
    fedilink
    arrow-up
    1
    ·
    1 year ago

    Theres something about the human mind as we take more shits throughout the years everything starts to hear, look, smell, taste and feel more and more like shit as the time passes.

    Which perfectly explains why my greatnana who lived to be 100 thought it was absolutely hilarious that she shat herself when she tried to blow out her candles on her birthday cake.