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Originally Posted by NoRush993/951
Negative interest rates allow companies to borrow at zero and buy back their stock to prop it up and keep from crashing. Think of all your natural resource companies that are going broke. They need to roll over debt and anything left will be used to buy back stock to reduce the float. Otherwise mass unemployment and pink slips will be handed out. Too many large employers with negative cash flow.
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No one is lining up to lend to those companies, and their stock prices certainly are not being propped up. For example, take the US domestic oil industry. Have you looked at the stock prices?. We're seeing bankruptcies, fire sales on assets, dividend cuts, and mass layoffs (about 100,000 so far).