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Why Did the Tech Bubble Correspond with Low Interest Rates?

Ultimately, our economy’s deeper problems aren’t so much a result of “money” as they are bad allocations of resources.

For context, read Bartlett’s article explaining the fall of SVB here. I wanted to make a quick note about why tech bubbles tend to correspond with low interest rate environments. Interest rates essentially dictate how long someone can wait before they need to produce something of real value. In a 20% interest rate environment, it will be evident really quickly if you are failing to produce something of value. Since essentially 1/5 of your capital disappears each year, if you aren’t doing something that will generate real profits quickly, you are sunk. You can’t paper over problems with more borrowing because the cost of that borrowing is so high. Additionally, in such an environment, the payoffs for investment need to be large Read More ›

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Unemployed hold cardboard box and laptop bag, dossier and drawing tube in box. Quiting a job, businessman fired or leave a job concpet.

Twitter Gets Blasted While Meta Struggles

While Musk’s every move is being scrutinized, Zuckerberg’s struggles fall to the wayside

Elon Musk, CEO of SpaceX and Tesla and founder of PayPal, radically reorganized Twitter in October and November, and now, is the subject of much criticism from the media. He has laid off hundreds of employees and fired the advisory board. In addition, he reinstated the formerly suspended accounts of Jordan Peterson, parody news site The Babylon Bee, and most outrageously, former president Donald Trump. A few days ago, somehow it was assumed across the Twitter sphere that the entire platform was about to implode. I started seeing people post things like, “If this is my last tweet, I’m okay with that…” Not sure what was happening, I experienced a sudden flood of similar tweets prophesying the Twitter era’s impending Read More ›

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green plant in clear glass vase

What Is Decentralized Finance?

When you pay Uber for a ride, or anybody else, you use a bank or a third party like PayPal. What if you could pay the Uber driver directly? Decentralized finance uses blockchain to establish trust and security without government regulations. Is decentralized finance the way of the future? Adam Goad, Dr. Austin Egbert, and Dr. Robert J. Marks discuss Read More ›