Cultural financing during bubble bust

Cultural companies have traditionally been subsidized. Recurring equity infusions, coming from governments or nonprofits, have solved periodic crises without resolving structural deficiencies in the business model. Migrating towards debt financing during this time of credit contraction implies competing against other economic agents with a lower risk rate.

Financing is discouraged by most of the world's central banks, including the Federal Reserve, the European Central Bank and the Central Bank of Venezuela, which remove money supply out of the market. In a world of overheated economies, expansive spending has created speculative bubbles that will be burst through monetary policy.

High international inflation rates discourage savings; they are challenged by increased interest rates. Imminent recession becomes an explicit objective to recover the long-awaited price stability.

Rubén Rivero

Caracas, Venezuela

Fotografía Leyda Camacho. 40 Grados Bajo el Sol