I'd really like to know how Harvard's MBA program can keep churning out morons that think virtue signaling cause whoring is more important than treating and serving your customer base well and that established management can't seem to figure out these Harvard MBA's aren't worth hiring. Company after company keeps destroying itself by bending over backwards to cater to people which aren't and never will be their customers while going out of their way to shit all over and alienate their previously loyal customer base.
It's another sad victim of the low-low-low interest rate market we've found ourselves in under. . . 3 separate Fed Chairs since 2008. Going on year 13 soon. 13 years of artificially low interest rates.
What does that do???
It allows corporate executives to fob off a TON of risk. Think about it. If savings acts are paying 1% and bonds 2% and the market has a potential of 10%, where is your money gonna go??? Even with one bad year out of 3, you're still WAAAAY ahead of the game as an investor. This means DEMAND for stock is high.
Couple that with low cost of capital to borrow - more C-suite members are recommending just buying back stock with corporate profits. No reason to build that risky factory or new product. Just buy back stock, show a bigger profit per share and look like a genius! If you run out of money doing so, just borrow a bit at practically ZERO rates. (This is also why Powell's big interest rate drop is doing bupkis to the economy - the difference between 2% and 0% is just not significant. Not in the least!)
Innovation dies in this environment. It's like helping a baby chick out of the shell. You ensure it's death by not letting it make itself stronger.
I've been chimp-screaming for higher rates for a decade. F the short term. F the real estate market. The REAL money that needs to be made in an economy - that is suffering at the hands of bad CEO's who can't manage their way out of their local Starbucks without a map and two handlers - is in companies innovating and taking risks. Higher interest rates forces companies to make better C hires and forces Chiefs to work harder, adapt faster and learn what they didn't know for a decade.
And it gets rid of this virtue-signaling crap. A CEO working his or her ass off to make $ for the company has ZERO time to worry about what the corporate opinion is on CHAZ.
Oh, and these higher-risk CEO's. . . . create a S-ton more jobs. So nobodygottimefordatprotesting!
But what the hell do I know. I'm not a Fed Chair.