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No it’s not. The fed printed so much money and dropped rates so low, there’s a massive excess of capital looking for business opportunities. Monetary policy is
by corporateslave5 6y ago
No it’s not. The fed printed so much money and dropped rates so low, there’s a massive excess of capital looking for business opportunities. Monetary policy is what is driving the economy, and it’s making this bubble bigger than ever. You can’t ignore economics and cheap money. We will have ten more we work like companies.
- herdodoodo 6y ago>The fed printed so much money and dropped rates so low, there’s a massive excess of capital looking for business opportunities Learn about monetary policy is and how the Federal Reserve controls the money supply before you make opinions on the matter.
- corporateslave5 6y agoEducate me then, why am I wrong?
- Gibbon1 6y agoYou aren't wrong. Most of the central banks loans went into inflating the price of stocks, bonds, and real estate. Inflation in those assets has been running over 10% a year. While goods, services, and wages has been running 2% per year. That's all due to central bank operations.
- orky56 6y agoRates are low now but it will take time for this to get reflected in VC/PE/corporate dollars to invest. The addressable market of consumers/enterprises that are willing to spend money on non-essential products/services is down and will drop further since budgets are being tightened and fat is being cut. The 2008 unicorns that were born out of the last recession had to provide oversized returns to investors based on them addressing needs well beyond what cash-strapped consumers/enterprises were willing to spend on. We're in for a ride.
- corporateslave5 6y agoNot really. You are underestimating the magnitude of money injected into assets.