toilet paper is actually a very cheap and everyday item... when it is in abundance.
how much would you pay for a 12 pack of toilet paper 6 months ago? $9? Nah that is full price. I’ll wait for next week when it goes on special and grab it for $4.50.
fast forward to today, and your entire family needs toilet paper and you are down to your last roll. Those who have plenty hold onto it and there is none available at your grocer.
so you walk down to the dollar shop that is now selling it for $100 a pack of 6... do you buy it?
same thing is happening now... cash is king. Whoever has it is holding onto it and unwilling to lend to you unless you pay a crazy amount of interest... that makes it too expensive for companies to borrow...
a lot of companies are already so deep in debt, and the risk of default in the next 6 months is very high. so lenders are bracing for that wave of defaults and when that happens they will need all the capital/cash they can get a hold of to keep themselves from going under...
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