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htx80nerd 8 hours ago

Friendly reminder the US Gov printed ~4 trillion dollars during the Covid years.

john_strinlai 8 hours ago | parent | next [-]

feel free to elaborate on the relationship you are drawing between that and the article

AirMax98 8 hours ago | parent | prev [-]

I actually don't understand how this would affect bankruptcies — why?

altcognito 8 hours ago | parent | next [-]

I don't know if this is his point, but a decent amount of cash went to individuals as part of Covid relief in different forms, and this caused a delay in bankruptcies because people were able to pay their bills. Pick your moral quandry.

rglover 7 hours ago | parent | prev | next [-]

Speculation/personal read on this.

1. A lot of companies got used to ZIRP money (not to mention the trickle-down effect to the rest of the economy).

2. The COVID printing spree/helicopter money had a knock-on effect of rising inflation (more dollars/demand competing for the same resources, or less). That was made even worse by tariff fluctuations.

3. The delta between revenue/investment money vs. cost increases relative to inflation likely exceeded the threshold for these companies to stay solvent (or to make it worth it to keep the business operational).

postalrat 7 hours ago | parent | prev [-]

Businesses focused more on seeking out easy government money than building good products.