“Virtuous”. It is fueled by artificial growth. It demands growth and makes sustainable, stable businesses a liability. It is absurd to see companies folding barely two weeks into hardship.
> It is absurd to see companies folding barely two weeks into hardship.
Why? Companies sitting on tons of cash is a bad thing. That cash either needs to be invested through hiring, buying equipment, etc...or paid out to the shareholders (who then spend, invest, etc...). Sitting on cash traps capital that could be doing something else to create value.
And before you say companies need to plan better, companies do plan for downturns. But, no company plans for their revenues to go to near zero overnight.
