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My interpretation is that OP is not arguing that BigCo's aren't currently making money. Instead he's saying that the amount of resources being pumped into the
by jstanderfer 14y ago
My interpretation is that OP is not arguing that BigCo's aren't currently making money.
Instead he's saying that the amount of resources being pumped into the ecosystem (financing, incubators, startups) is significantly larger than what is required.
That the market as a whole won't grow fast enough to satisfy the needs of all the investment capital being deployed.
- skylan_q 14y agoI think the OP misses that it's like this not only in the tech sector, but many others. With the fed more than doubling the monetary base in the last couple years, that new money has to go somewhere... It goes into blowing bubbles.
- akkartik 14y agoIt's not a bubble if prices going up because of monetary policy. It's inflation.
- eru 14y agoBut if inflation in different parts of the economy has different rates, than you can get a sudden re-alignment.
- akkartik 14y agoHmm. Maybe if the economy inflates at differing rates it's not just because of monetary policy? It's hard to reason about inflation because different goods do tend to inflate at differing rates. Perhaps we should measure the change in inflationary rates before and after some specific event.
- eli_gottlieb 14y agoTechnically the Fed hasn't actually doubled the money in circulation, it has mostly just printed dollars to prop up bad assets. So the bubble there already inflated, and now the Fed is just refusing to let it pop and deflate (which it should). Hello, zombie economy.