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> it’s like thinking interest rates are a lever in the economy anymore. Interest rates are absolutely a lever in the economy. It's not a coincidence that the
by ForHackernews 3y ago
> it’s like thinking interest rates are a lever in the economy anymore.
Interest rates are absolutely a lever in the economy. It's not a coincidence that the instant the free-money ZIRP spigot was shut off, suddenly investors cared about profitability again and fat bloated tech firms started having layoffs for the first time in decades.
- lifeisstillgood 3y agoIf all the hydraulic fluid is draining out of the brake system, pulling on the handbrake (going from a decade of zirp to 7% in a week) is going to have an effect but that does not mean I think you can tap on the brake pedal and get the fine control you think you can. I agree Most tech companies have been spewing capital out the door and funding the lucky RSU / optioned employees for a decade. I guess the weird hiring practises and so on have been hiding that reality. I think shareholders are waking up to it, but zirp is only a small part of the story