71–80 of 236 posts
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A substantial chunk of the tech industry are speculative zombie companies that are built on the edifice of zero interest.
Since tech companies use other tech company's products this implies the tech industry is a speculative bubble.
This wont help inflation, interest rates are still effectively negative when inflation is considered. What it will do is rise i interest payments on the US sovereign debt very significantly. The US has two options, as far as I can tell. 1. Slash govt. spending (entitlements and defense) and rise taxes on the laptop class (that's us folks!) 2. Accept structural inflation and high interest rates. The Dollar dominance i…
The dollar's supremacy isn't going anywhere.
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I’m no expert here, so someone by all means correct me, but my understanding is that the fed rate correlates to the rate of interest the government has to pay on its debts. The higher the rate, the larger the chance that the government defaults which for the US would be catastrophic.
https://www.crfb.org/blogs/just-how-big-are-federal-interest... > According to the Congressional Budget Office's (CBO) latest baseline, the federal government will spend $400 billion on interest payments on the national debt this fiscal year (FY). That's equivalent to just over 8 percent of all federal revenue collections and roughly $3,055 per household ... Interest costs and the national debt could be even higher i…
On a related note, since mid-April, the Fed has withdrawn –$140B of liquidity from the financial system: https://news.ycombinator.com/item?id=32929454 and earlier this year announced that it plans to continue withdrawing liquidity from the financial system at the rate of $90B/month for the foreseeable future. The innocuous term for these withdrawals is "quantitative tightening." There are no historical precedents for…
Like, it's in proportion to the last big thing we did, albeit in the other direction. I'd argue that's pretty close to precedent.
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As someone that has been exploring real estate for the first time, after speaking with some people it seems that mortgages have generally been less expensive than rent? Good luck finding something like that with today's prices and interest rates.
If this isn't true for your area, the general advice is to wait a few years. Your mortgage payments are locked in, rent increases year-over-year at single- or double-digit percents.
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A substantial chunk of the tech industry are speculative zombie companies that are built on the edifice of zero interest.
Can you elaborate? When I think of tech I think of venture funded (equity side), not debt funded.
The moment the economy tightens up, suddenly the venture funds have less money.
I'm not sure what's causal in it all, but from the outside it certainly looks like that's what happens.
I'll echo what some folks have said in other threads, we've had rates down near zero for fifteen years, and we've got to get them back somewhere near historic normals at some point. If only so they can be cut again during the next crisis. How much is our entire culture the result of cheap money?
Ow, my 3x leveraged ETFs aren't looking so good.
how many people are buying these? It seems like the popularity of 3x funds has exploded over the past 2 years.