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> Interest rates had been rock bottom since the 2008 crisis Exactly. So we had ~14ish years of effectively 0% interest rates. That's never happened before in h
by rco8786 3y ago
> Interest rates had been rock bottom since the 2008 crisis
Exactly. So we had ~14ish years of effectively 0% interest rates. That's never happened before in history. Now that we're going back to normal rates, we're discovering that some things we did when rates were 0 aren't actually feasible anymore.
That's what ZIRP is. It's a decade and a half of 0% coming to an end.
- laidoffamazon 3y agoI think it's absurd to compare the tech sector in 2023/2024 to the tech sector in 2010/2011. Unemployment is lower today, and several capital intensive industries (ML hardware acceleration for one) are significantly hotter than anything we had then.
- lumost 3y agoHaving been in both time periods, a distinct difference in 2021 was a sense of unreality - a company/org/large team could survive provided that they had someone important who believed that it would be useful some day. Ultimately, I suspect this is because important people had access to effectively infinite dollars for a time. Provided that they did not have to mark down a loss. This time period is coming to an end, we're once again looking at real metrics and seeing that some sectors of tech had none. In the end, this will probably be good for the industry - but it will be an unpleasant transition.
- rco8786 3y agoI didn't compare the tech sector now to the tech sector in 2010. Not sure where that came from. I'm saying that having 0% rates for 10+ years resulted in a lot of behavior that is largely impossible in a normal non-zero environment and we're just beginning to fully discover what those behaviors were.