Author: Scott Welsh

When rates are low, or dropping, tech thrives. It’s easy for tech companies to get money at low rates and, thus, it’s easy for fast-growing companies to expand. Rising rates puts a huge money crunch on start-ups (and tech in general), which is why we saw so much bloodletting in tech over the past year.

Back in 2008, banks were ignoring the houses foreclosing in their own neighborhoods while taking free money in the form of highly-leveraged derivatives based on false mortgage grades from suspect rating companies. This time it’s different.

It appears the crisis will be contained, but it won’t come without violent swings day-to-day.  Where does that leave us? With sore necks from watching the market’s wild up-and-down fluctuations.

On one hand, bailing out the banks ostensibly saves us all from a terrible crisis.  On the other hand, “Um, why are we bailing out these idiots who were so careless with our money??”

Fortunes seem to be dramatically changing every hour on the hour as the market is whipsawing violently. And while it’s doing that, quietly, chip-makers are doing quite well.