Sorry rentier shills but no its not.
For once, low oil prices may be a problem for the world's economy https://t.co/9KSZNy1IWY pic.twitter.com/yGK14gNpUu
— Bloomberg Markets (@markets) February 2, 2016
For once, low oil prices may be a problem for the world's economy https://t.co/9KSZNy1IWY pic.twitter.com/yGK14gNpUu
— Bloomberg Markets (@markets) February 2, 2016
3 comments:
More oil supply lead to less investment.
But business investment leads economic growth according to orthodox leaders.
And mon-pol drives business investment.
So Fisher/Yellen and their crew probably think their rate normalization burst an irrational bubble in tech and oil investment. Oil burst easy as commodity busts go quick, but tech is slowly melting as investment slows but FB/Aapl/Goog/MS aren't going down so easily as people have only seen a few pieces of pyrite in those roads paved in shiny yellow metal.
The tech melting is happening in the Unicon fantasy-valuation IPO complex with impossible valuations and smoke products.
FB and GOOG etc. have income, yeah all are glorified marketing companies, but powerful ones which can reach millions w/ pretty good audience targeting, they have also asymmetric market power to the point that they can decide winners and losers in many industries. This is hugeeeeee bargaining power, so regardless of how the market goes their sole power is going to guarantee their relative strength out of sheer monopoly dominant positions and they have products and solid income.
The others though... and remember many of the "tech" companies are just very old one-trick ponies: leveraging exploitation of labour and regulatory capture (like Uber), with the upcoming changes on politics the time for such schemes to still be profitable are coming to an end (although it may take a couple years yet). There is no real tech there. Same for many unicorn fantasyland biotechs than are built on dreams, marketing and not so much on real products. All these are already melting as things head south as have huge bags of air below their valuations.
My take is Dem party is owned by tech billionaires so if Dems win, tech friendly policy is guaranteed. Every tech billionaire supports the Dems and every Dem offers huge subsidies to tech.
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