If you want to know what company leaders think, look at what they’re doing with the money. When firms start hunkering down, the oxygen is sucked out of the economy and recessions easily follow — something something Keynesian paradox of thrift. Today, two of the most reliable indicators of the state of the economic cycle are pointing in opposite directions. What are we to think?
Companies splurging money on projects with unproven economics might sound a bit worrisome to creditors who’ll be left holding the bag. But to the rest of us they should spell boom. Mark Zuckerberg:
If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously?.?.?.?But what I’d say is I actually think the risk is higher on the other side.