Here we see the consequence of the ECB's years-long zero interest rate policy: private companies in the Eurozone are operating with much more debt than their competitors in the USA. This makes them much more vulnerable!
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42 sats \ 0 replies \ @0xbitcoiner 16 May 2024
That's an interesting fact, but it doesn't surprise me much given the significant difference in investment culture between the US and Europe. VCs are much more active in the US. Do you know if VC investments are considered debt?
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42 sats \ 2 replies \ @Satosora 16 May 2024
Wow, they have taken on a lot more debt.
Is that years on the bottom?
They seem to have taken more debt throughout all time.
Maybe they are missing something, or adding something to the euro debt?
Because it seems to be on a similar scale to the US debt.
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11 sats \ 1 reply \ @GhostofTruth OP 16 May 2024
Here in Europe, of course, there is also a different financing culture, which is based on the foundation of regional banks and lending, as seen in Germany. but years of zero interest rate policy have really made credit seem damn cheap in contrast to equity financing.
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42 sats \ 0 replies \ @Satosora 16 May 2024
I see.
It looks like they carry around the same debt, just at a bigger percentage.
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