It's a bubbble, but not an Internet bubble. It's US-dollar bubble. The FED is printing money like never before so everything denominated in USD is going up.
When the FED is buying US bonds through QE2 they push the other bond-buyers into buying other things, instead of the bonds the would have bought, had the FED not distorted the market. This pushes prices up for other asset classes. There's excess liquidity desperately looking for ROI. The money has to go somewhere.
On the one hand, I'm happy to hear this. There is so much we need to work on, technology which needs to be invented and move forward, that such a hearty warchest makes me excited. Maybe I will actually be able to get that genetic therapy I want before my hair falls out any more!
On the other .. no-one but has any money to put into speculative high-risk investments right now except the elite. That the one-percenters have almost 8 bil to casually drop on speculative VC while much of middle america is just worried about their jobs .. makes me feel sick a little.
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[ 0.26 ms ] story [ 32.9 ms ] threadFED and the other private banks are not stockpiling US dollars in their own accounts.
On the other .. no-one but has any money to put into speculative high-risk investments right now except the elite. That the one-percenters have almost 8 bil to casually drop on speculative VC while much of middle america is just worried about their jobs .. makes me feel sick a little.
Truth probably somewhere in between.