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A comment on Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record. Parent comment

Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by adventured on Friday April 24, 2020 @11:08AM (#22968762)
That doesn't inherently follow at all. It very much depends on the company in question. IBM has a very profitable business and has for the past decade.

They're paying around mid 2.x% interest on their debt ($1.3b interest expense last fiscal year). You can double that rate, and IBM can safely handle the cost. They can afford to pay far higher interest rates on their debt while still producing excellent profitability.

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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by onlyrealcuzzo on Friday April 24, 2020 @03:40PM (#22972099)
The interest on their debt would be 6-8% if the US Treasury yield wasn't artificially manipulated by the Fed to ~0%.

They'd be paying 3-4x that on interest. That's a decent chunk of their profits / buybacks.

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