Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I'm surprised people aren't connecting all these layoffs with their root cause: the increasing cost of capital. Naturally, projects that were economically profitable only at a very low cost of capital could turn unprofitable at a higher cost of capital, destroying value instead of creating value. Shifting resources away from such projects is the logical thing to do, but if you end up with a surplus of resources, the only other possibility is to trim those resources. Discussions about how much cash Google has on hand are completely irrelevant in my view.


While this is a cause, it is definitely not the root cause.


What is the root cause in your view?


Well, the capital costs are not increasing on their own. You can argue what caused them to rise, and then that would be the reason.


It is the root cause. I think people just don't want to admit that the Fed has more control over our economy than they thought.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: