a stock company is the closest thing you can ever have to a printing press for money in the basement.
Once the easy cash flow stops, things change.
CASH FLOW AFFECTS MGT MORE THAN MGT AFFECTS CASHFLOW.
If I win the lottery tomorrow I start making stupid decisions. If I lose my job tomorrow, I make better decisions.
On decisions, oh yes I have seen that flush with cash effect many times and wonderes aloud why we could not discipline to manage in good times like we sometimes do in lean. Never happens though. We lurch from crisis to crisis.
I think I counted nine busts in the 40 years of the oilfield.
“And that is because we have too much easy money looking for a place to land.”
Why did we have so many years of easy money (effectively 0% rates)? Because of the subprime real estate meltdown in 2008.
Why did we have the real estate meltdown? Because of the Clinton / Dem Congress “Community Reinvestment Act” made sure EVERYBODY could own a home. You barely needed a pulse (and no employment verification) to get a mortgage.
Then stupid government never learns and COVID hit, so they shut down the economy throwing everybody out of work. Then they printed $5 trillion out of thin air which ignited inflation requiring rates (at zero due to the 2008 meltdown) to go up setting off today’s mess.
EVERYTHING is because of stupid, corrupt government.