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> The interesting part is why are they all in sync, and fairly similar in size. As to the in sync part, the most plausible explanation is the economy. Inflatio
by nordsieck 4y ago
> The interesting part is why are they all in sync, and fairly similar in size.
As to the in sync part, the most plausible explanation is the economy. Inflation from the Russian-Ukranian war plus Covid stimulus drove the Fed to boost the interest rate.
The similar size bit is more difficult, but if a lot of that is support staff like recruiting, then that may make more sense, if those staffing levels were based on the number of engineering headcount in the first place.
- shubb 4y agoOne explanation would be that a rising risk free rate makes money now more valuable than higher future cash flows, so leadership who are stock incentivised in order to align thier interests with shareholders sacrifice future growth for higher margins. R&D, marketing, even good customer service all allow you to grow next year but firing them allows you to return more money now.