Hacker News new | ask | show | jobs
by aluminussoma 3169 days ago
I am not the original poster, but I share some similar sentiments. I will try to explain why I agree with that comment:

The Federal Reserve has kept interest rates artificially low through its programs, in order to nudge economic growth. In turn, companies have used these low interest rates to borrow vast sums of money. Most have spent it on share repurchases but others have used it to fund acquisitions to chase higher growth. It is in this environment that VC money has thrived, funding candidates for future acquisitions or providing money to large companies (like Uber) to continue growing their business.

I am by no means a professional economist. I am just trying to interpret the current situation with the little bit of knowledge I have. I welcome other opinions telling me I am wrong and why.