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The irony as a fly-over-American is great. We are constantly and sanctimoniously told we have to move from our cities and towns to the Coastal regions. When toxic chemicals are spilled we're ignored, or worse - mocked. We're told we're financial burdens on the country.

But what we see is both coasts gambling with low interest rate money, getting rich off of fee leaching, and, when the gravy train slows down, causing a financial meltdown within 15 years of each other.

Don't kid yourselves. The tech boom was largely low interest rate fueled and, for many of your companies, a mirage.



I'm sympathetic to the tech mirage view generally. One piece I don't quite understand though, is why did tech so disproportionately gain from low interest rates when compared to other industries?

Is it just because the friction of starting a non-physical business is so much lower? I'm not quite satisfied with that as an explanation, because that provides a competitive advantage to tech vs other industries regardless of interest rate levels.


Tech is a very high risk-high reward; its not so much that low interest rates favor high tech, but rather that high interest rates decimate high tech.




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