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266 sats \ 4 replies \ @k00b 27 Oct 2023 \ on: Ridiculous ZIRP phenomena you've seen? meta
When I think on this, it's hard to imagine anything that's emerged in the last 10-15 that isn't ZIRP-based in some fashion.
Same-day, next-day, two-day shipping might be a surprising one. For businesses at scale, debt is definitely being used to subsidize customer acquisition costs to later be redeemed over the customer lifetime. With interest rates rising, many of these kind of things will implode.
Venture capital, once a niche investment class, in general exploded through ZIRP. How much debt is financing that I wonder?
I've been calling BNPL ZIRP cancer for years now. Its so unoriginal that it has an initialism I guess.
Good call. In general, any business activity that used to generate between 3 and 8% percent returns will likely disappear.
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That's so many businesses. That's likely all of retail that Amazon didn't already kill. Automakers and airlines are probably going to need to be bailed out again.
I'd guess a lot of our economy, and what manufacturing base we have, depend on ZIRP.
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I hadn't thought about much of this until now. All the supply chain disruptions, labor force problems, and so much more, are rooted in the rate hikes to some degree.
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Chilling!
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