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To: CodeToad
No way. If anything, many companies in the stock market will greatly benefit from inflation and higher interest rates.

Not true. The asset bubble created by investors taking out bank debt and putting it immediately into equities would go away if rates get too high.

That would cause a major downswing in stocks, and many companies would be hurt.

28 posted on 01/17/2022 8:25:42 AM PST by politicket
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To: politicket

“The asset bubble created by investors taking out bank debt and putting it immediately into equities would go away if rates get too high.”

I am not aware of that. I know the cash holdings is more than $12T and that has fed investment but investors have few places to put cash for investing.


30 posted on 01/17/2022 8:26:47 AM PST by CodeToad (Arm up! They Have!)
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