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When interest rates start going up later this year this bubble will pop
by aburan28 11y ago
When interest rates start going up later this year this bubble will pop
- slater 11y ago[Citation needed]
- toomuchtodo 11y agoI don't have a citation to backup GP/OP, but the school of thought is that because interest rates are so low, capital is chasing increasingly risky investments to get an "acceptable" return (which is $expected_return after any taxes or inflation). With interest rates rising, other asset classes will see returns rise, reducing the attractiveness of startup/VC investing.
- testrun 11y agoNot only that, but the US, Europe and Japan printed a lot of money that is floating in the system (quantitative easing). If interest rates rise, it will mop up a lot of that.
- toomuchtodo 11y agoStrangely enough, even with trillions of dollars in QE in both the US and Europe, GDP is stagnant (or retreating) and the EU still has negative interest rates. Welcome to the new normal.
- Havoc 11y ago>[Citation needed] A citation for a future event? Its clearly a prediction...
- testrun 11y agoIt could be the trigger. Other things to look at is Greece, China's economy, Europe's quantitative easing.