actually how sound it operates. The model relies on TANGIBLE CASH FLOWS.
The CASH FLOWS are managed, so they grow at least at the rate of profit increases.
That is the problem, my friend.
Cash-flow-CENTRIC businesses are THE MOST susceptible to INTEREST RATE INCREASES. They would ACCENTUATE the already declining cashflow (experienced by all other sectors) with MUCH MUCH HIGHER interest rate cost or discount rate to the cashflows.
Call me stupid but I would like master Warren to bitchslap me and call me stoopid. Of all people, these FACTS should have come from him directly and NOT FROM ME. See, I have learned to use my grasshopper tiny wings, master.
The right enemy
6 years ago