Hacker News new | ask | show | jobs
by cannabis_sam 1704 days ago
> Most businesses operate close to break-even (in efficient markets), and many will immediately go under.

Then they are not managing risk properly and actually need to go under.

1 comments

I'm not even sure that its true to a meaningful degree - at least in the US, large businesses dominate economically and are quite profitable (much better than "break even"). Microsoft, Berkshire Hathaway, JP Morgan - they are not going to "go under" if interest rates go up 0.25%, even though they all use corporate debt.