From the CBs to companies: The flow of money and no one loses

The CBs are lending out more and more money to listed companies to buy back their equities driving the price up while the money is still lying in the company’s account. Once the equities price goes down, it would not damage the company’s cash flow, since they are not really spending their money.

But what if the company choose to spend the money? It will expose itself to financial risks as the prices of the global asset go down and the lack of consumer confidence.

The company will sell its equity once the CB stopped fundings. And then the market will be crashed. The actual loss is small in this process as the actual damage has already been caused.

变天

火红的太阳炙烤着大地,从窗口望向外面,能看到微微泛着红光。我按了一下按钮,让机器把我田里的苗收割起来。由于天气的原因,它们形状各不相同,有的甚至长成了其他的品种,但我已见惯不怪。我看看天,要变天了。也不知道太阳会是方是圆,是明是暗。不管了,我要在变天前把苗换了钱。