[skylan_q]

I think the OP misses that it's like this not only in the tech sector, but many others. With the fed more than doubling the monetary base in the last couple years, that new money has to go somewhere... It goes into blowing bubbles.

[akkartik]

It's not a bubble if prices going up because of monetary policy. It's inflation.

[eru]

But if inflation in different parts of the economy has different rates, than you can get a sudden re-alignment.

[akkartik]

Hmm. Maybe if the economy inflates at differing rates it's not just because of monetary policy?

It's hard to reason about inflation because different goods do tend to inflate at differing rates. Perhaps we should measure the change in inflationary rates before and after some specific event.

[eli_gottlieb]

Technically the Fed hasn't actually doubled the money in circulation, it has mostly just printed dollars to prop up bad assets. So the bubble there already inflated, and now the Fed is just refusing to let it pop and deflate (which it should).

Hello, zombie economy.