ilmscore | Prediction Details
"And so this is going to be an issue as companies who did these stock buybacks, the leverage stock buybacks particularly and don't have the revenue to continue supporting the higher debt costs. And that's why you really want to pay attention to interest rates because that can impact many different phases of the economy. Because now if a company doesn't have the ability to continue making the higher costs because of inflation and then the higher debt costs because of interest rates, that's going to be a problem. And we're just starting to see the impacts of the higher debt costs. I mean, 2024 is kind of like the real beginning of the readjusting phase. We're going to see more in 2025 and again more in 2026."
By Minority Mindset | May 16, 2024 | Pending
From video
We JUST Got The Latest Inflation Report - What You NEED To Know 00:15:51 - 00:16:28
Interpreted Prediction
Companies that engaged in leveraged stock buybacks and do not have sufficient revenue to cover rising debt costs due to higher interest rates will face issues. 2024 marks the beginning of this debt readjustment phase, with increased impact expected in 2025 and 2026.

Prediction Details

Topic
Debt Readjustment for Companies

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