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???

  • PlantbasedChe@lemmy.world
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    11 months ago

    We are living in an universe with multiple possibilities.

    We are the most powerful and capable animal on known universe. We set the rules. Considering we treat others animals with cruelty, forced labour, enslavement and mass murdering, we definitly rule with power abuse. Then, elites are doing to us just same we do with less capable living beings.

    Justice is important, not?

    • Carnelian@lemmy.world
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      11 months ago

      Considering we treat others animals with cruelty, forced labour, enslavement and mass murdering, we definitly rule with power abuse.

      Am I wrong for thinking that it’s not something “we” do, but in this case, also something being done by the elites?