Hollywood has captivated our collective imagination for over a century. We tend to view it as something other than an industry subject to the same immutable laws of economics like cars, coffee, lumber and everything else. The current strike by Hollywood writers and actors in the face of multiple movies losing almost unheard-of amounts of money, cash bleeding streaming services and declining stock prices has been a wake-up call to an industry that narcissistically believed that it was immune to the business cycle. Surely, Hollywood has a classic malinvestment problem. 
Near the end of February 2009, the Fed Funds rate hit 0.2 percent during the height of the Great Financial Crisis. In the turmoil of the day, Disney stock hit a low of $16.77. This was down from the company’s all-time high of

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