• ☆ Yσɠƚԋσʂ ☆@lemmygrad.mlOP
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    1 year ago

    I think the other big factor is that tech startups are a big chunk of the economy, and many of these startups live almost entirely on VC funding without generating much actual revenue of their own. Now that the rates are going up, these companies have to show 6-7% growth just so they don’t lose money for the VCs. This is obviously resulting in less money being poured into these startups since investors are realizing they’re not likely to make it back. And I think we’re seeing the whole tech bubble bursting already as evidenced by constant mass layoffs in tech sector.

    • Buchenstr@lemmygrad.ml
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      1 year ago

      Funny thing is, these tech startups and VCs also have these shady junk loans from regional banks. Who then gain significant investment from big banks, and the money these big banks are investing into aren’t even theirs, its the governments. As they have no generated any money since 2020 these big banks rely on government aid to continue their greedy, self-indulgent money schemes. That’s why there’s alarms that a super bubble has formed in the US, as its not relegated into one market/sector, buts its all encompassing in every market. Add to the fact that the general populace is far poorer than they were pre-2008 (Due to the selfish capitalist self-plundering of its own citizens) so even if a recession happens, the general populace cannot be relied on to spend their way out of it. This goes back to ellens visit to china, to encourage them to buy bonds (and probably begged them not to sell it, amazing tactic since they’ll talk about human rights abuses in china next).

      And the war in ukraine wasting billions which could’ve been spent on the recovery for the pandemic, and the knock-off effect of de-dollarisation, it’ll harm government profits to properly mitigate the effects if a recession does happen. Again this is probably just my opinion, but the next recession won’t be a recession, it’ll be an economic collapse.

      • ☆ Yσɠƚԋσʂ ☆@lemmygrad.mlOP
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        1 year ago

        Yeah, the whole thing is one giant house of cards, and sooner or later there’s going to be a catalyst event that triggers the crash at which point all of it will come crashing down in a giant chain reaction.I also expect that there is little chance of recovery once the process starts. A lot of the factors that allowed US to recover in 2008 simply aren’t present today.