[bettercallsalad]

You are forgetting the root cause of why all the tech layoffs happened.

Between mid 2020 and early 2022, tech was the place investors were willing to pay any money even at a ridiculous P/E. It wasn’t because the value proposition suddenly shifted to tech but money was plentiful and looking for places to go and tech was the place that could give you high return.

Fast forward, US Fed has decided there is too much inflation and consumers need to slow down so they are shrinking their balance sheet. Investors suddenly are getting 8% return basically without any risk. Why would you invest in tech and all the volatility when you can get that return. Suddenly companies that could raise money and rollover their debt in peanut interest expenses are seeing money has dried up.

There is one and only one responsible for this mess. Central Bankers. They had absolutely no idea what they were and are talking about including very basic things such as where would inflation and interest rate go in short term. In 8 months, they went from “we need deflation and we foresee low interest till 2024” to largest inflationary environment since 1980s and highest interest rates. And of course they face no consequences. #EndTheFed