At economic development conferences over the last 20 years, the conversation frequently turned to the same question: How can we create our own Silicon Valley?
But as rates fell, investors needed to find yield somewhere.
It’s unlikely that inflation will go back down to pre-2021 rates—and that means higher interest rates will last, too.
Rates may also remain higher because foreign governments have less excess savings to park in U.S. Treasuries, our debt levels are astronomical, and the Fed, trying to keep inflation in check, is less able and inclined to buy U.S. bonds.
With money tighter and investors more selective, what made Silicon Valley so innovative may be reaching its terminus, especially given the area’s other glaring problems.
https://www.city-journal.org/can-silicon-valley-remake-itself
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