Corporate mergers precede recessions


Corporate mergers tend to run in cycles — which we’re in one right now. The AT&T-Time Warner deal and proposed Comcast-FOX consolidation are merely the latest in a year (less than half over) that has seen over $2 trillion shelled out for mergers. Besides the problems of economic concentration caused by mergers and the mirrored increase in political power and influence, merged corporations help create and precede recessions. Merger manias tends to peak before recessions. Peaks in the past have coincided with increases in rate hikes by the corporate-controlled Federal Reserve — which happened this week. That’s because corporations heavily borrowed when money was cheap to borrow due to low Federal Reserve-set rates. Now that rates are rising, debt will be more expense by corporations, government and people to pay off. Sad to say but expect to see a serious economic recession in our near future…

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s