WeCollapse

by Karl Denninger Market-Ticker.org

In a negative real rate environment all sorts of insane things, when analyzed objectively, “work.”

As soon as that ends, and end it always must, all those firms either have sufficient operating cash flow and can cover financing at market (that is, positive real rates) or they go out of business.

Fundamentally putting all manner of larded up “pretty” on shared office space is a loser. MCSNet had its first actual commercial space in a “shared building” environment but there was no tarted up nonsense; the “common areas” were the hallways and elevators, basically. The office (and what was a bare open-space room we turned into the computer room) spaces were it and as such the overhead for things like the bathrooms (down the hall), hallways and elevators were modest.

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