Hacker News new | ask | show | jobs
by mnd999 1478 days ago
If the money is doubled but most of it goes into offshore investment funds because those on the receiving end already have enough bread then the price of bread doesn’t really change, but venture cap funding becomes more readily available.
2 comments

An investment fund is not a bank vault. The money leaves the fund and enters the economy. In particular it will be invested in companies, which will use it to buy assets and pay wages. The effect is similar as if you had spent it in the first place.
And P/E ratios go to fantasy land!