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That’s mainly due to irresponsible monetary policy by the Fed. Imagine if the benchmark rate was 10%. A lot of the indebted would default/go bankrupt, but it wo
by 0x8BADF00D 7y ago
That’s mainly due to irresponsible monetary policy by the Fed. Imagine if the benchmark rate was 10%. A lot of the indebted would default/go bankrupt, but it would also incentivize companies to save and behave fiscally responsible.
- outside1234 7y agoIn short order, when inflation takes off, it will be 10%, so we'll get to test that theory.
- hef19898 7y agoIf the benchmark was 10% a lot more money would go to more traditional investments. And VC funding would be much lower.
- atlantacrackers 7y agoStated another way, the equity premium over a 10% treasury rate would make VC investment for LPs much much less attractive as an asset class.