Approximately 35% to 40% of publicly traded companies in the United States are classified as "zombie companies" (whose operating profits cover operating costs and service debt without reducing the principal).
I have companies with -400% that go upand companies with like 10-20% profit that only went up 100% over the past 10years
>>62589824so what? they wont go anywhere and they provide necessary servicesinflation will erode the debt
>>62589824Is it possible that in some cases it's better to play the long game with debt and let inflation reduce the principal?
>>62589824Are you implying fundamentals matter for stock prices?
>>62589963This, we need datacenter in space a lot more like clean water or food down here!
>>62589993Very few companies have access to fixed term loans through bonds. They need to have a very high credit rating for that to happen. Most companies are subject to floating rates and since inflation and interest are two faces of the same shekel, the cost of servicing will inevitably go up in the long term. And even for firms that do have access to fixed rates, the bonds will eventually mature and in a high inflation scenario the creditors would most certainly not refinance the debt at the original low rate. Goyim are so funny always thinking they found a "hack", not understanding they simply cannot win. Stick to the real world, Billy Bob.
>>62589824They did as bad as the government, they barely survive on tax revenues. Without tax they’re nobody.
