1. Not all money has become 2x more expensive. Extremely short term loans have become marginally more expensive for the borrower. Mid and long term interest rat

1. Not all money has become 2x more expensive. Extremely short term loans have become marginally more expensive for the borrower. Mid and long term interest rates remain largely unchanged, on downward trajectory. 2. You changed the amount of principal in your example. A company that goes under due to an expected 0.25% bump in short term interest rates was in extremely poor financial health to begin with. 2. I was under the impression that VC firms typically raise money from a pool of investors and they take a cut of the % return to those investors. How likely is it that VCs are financing a substantial (if any) portion of their investments through short term loans subject to the short term interest rate? 3. The minimum possible FFR adjustment is 25bp (historical, not a hard rule but a custom) 4. Fed does not adjust monetary policy to suit specific sectors of the economy 5. Fed has committed to getting to 2.0% core inflation by 2018 [1] and would not have risked credibility loss by raising rates if it did not intend to continue to hike (and hike fast) [1] http://www.federalreserve.gov/monetarypolicy/fomcprojtabl20151216.htm http://www.federalreserve.gov/monetarypolicy/fomcprojtabl201...