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A comment on Netflix's Junk Bonds Explain How We Are in a Corporate Debt Bubble. Parent comment

Re:Netflix's Junk Bonds Explain How We Are in a Corporate De... by oblio on Tuesday February 04, 2020 @05:50AM (#22234211)
> I’m waiting for this bubble to pop, and take everyone down with it.

I don't like bubbles, obviously, but don't be so thrilled about bubbles bursting and "taking everyone down with them".

Life becomes miserable for a lot of people when bubbles burst, and frequently it becomes way more miserable for people that aren't responsible for the creation of these bubbles.

Suicides rates, depression rates, etc. go up.

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Re:Netflix's Junk Bonds Explain How We Are in a Corporate De... by blackrock on Tuesday February 04, 2020 @05:59AM (#22234261)
I don’t like it either. But we need a real correction.

This current trajectory is not sustainable.

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Re:Netflix's Junk Bonds Explain How We Are in a Corporate De... by puszczyk on Tuesday February 04, 2020 @07:10AM (#22234660)
Why? — serious question. A lot of the people I know and/or follow online have been saying that stock markets (and housing) is a bubble since at least 2015 if not earlier. Yet 4–5 years later we’ve seen massive gains. Also, the top companies are making a lot of money, so their valuations are high, but not crazy. On the other hand: startup valuations seem to be through the roof.

So when you say — “we need a real correction” and “not sustainable”. I’m curios — what exactly is not sustainable, and why a correction will make it more sustainable? Why do we “need” a correction?

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Re:Netflix's Junk Bonds Explain How We Are in a Corporate De... by oblio on Tuesday February 04, 2020 @07:20AM (#22234711)
Because the economic theory behind bubbles is solid and easy to understand:

1. resources are not infinite

2. human creativity is basically boundless, but it needs time

3. humans tend to think alike and to get excited about the same things at the same time

We find a better way to manage resources, everybody hopes it will cure cancer, provide world peace, etc. As a result investment skyrockets, the "new way" develops and helps everyone but inevitably it doesn't do everything people investing a lot of money were hoping it would do. So people pull their money back and get scared when they realize how much they risked. People spend less money and things enter a downward spiral.

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