It’s Turning Into A Very Interesting Week

Authored by Mark St. Cyr,
Back in days of yore (circa January 2017) I dared make the assertion that all that was ‘unicorn infatuation’ in the Valley was much more akin to ‘the old gray mare ain’t what it used to be.’
In the article ‘Is 2017 The Year Silicon Valley Experiences The Dark Side Of ‘It’s Different This Time?’’ I posed the following. To wit:
‘Here’s the equation I believe will not only send shock waves, but will bring down many a valuation edifice within ‘The Valley’ in 2017. And here it is: ‘First: The Fed. And Second: Rate hikes.
Two very short sentences containing nothing more than two words each but their implications could have exponentially explosive results. For what they portend is that ‘It’s different this time’ may indeed be exactly that.
What I hoped you may have noticed during this discussion is the one thing myself and very few others pointed out would happen if the hypothesis we’ve been articulating over the last few years was correct. That hypothesis has always been ‘Without the Fed. pumping in unlimited funds via the QE programs, and a ‘death-grip’ to the zero bound (aka ZIRP) the first ones to show how much of a facade these ‘markets’ where would be seen directly in the ‘tech’ space.’

This post was published at Zero Hedge on May 4, 2017.