
Why Was Winter in Venture Capital Funding So Short? - kimsk112
https://bothsidesofthetable.com/why-was-winter-in-venture-capital-funding-so-short-40138f426f39#.7j8ikq399
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FiatLuxDave
An interesting article. The most interesting point to me was the effect of
global capital injections. I had assumed that the main reason why SV VC hasn't
slowed down was because rates were still low, and the Great Capital Clog is
still in place (see below). Because Trump appears to be trying to fix the
economic problems of the heartland through trade and immigration policies,
economists and the Fed don't expect to see the kind of growth that would lead
to a need to raise rates, so the existing conditions remain in place.

By the "Great Capital Clog", I mean the systemic effects that cause the money
injected into the economy by Fed policies to be allocated primarily to
geographic regions with a strong financial industry. This has led to a
divergence of macroeconomic conditions with easy-money inflation in some areas
and deflationary effects in others. Normal macroeconomic theory says this clog
should not exist. I'd love to find a good strategy for arbitraging the
difference, because there is a lot of money to be made there.

