Wise words from Nassim Taleb on the risks our economies are facing.
A whole generation of investors doesn’t understand the implications of inflation and interest rates, after 15 years of near zero rates.
Venture Capital got used to value businesses in light of the next funding round, not future cash flows from the business. This is feeding an ecosystem that was impossible under normal interest rates. Future cash flow stopped being the relevant metric.
Real Estate was substantially inflated because of zero rates.
This all needs to change, probably not without pain.