Less money and more fear: what’s going on with tech

The face of a man who will be increasing interest rates again. | Image: Julia Nikhinson/Getty Images

You notice that flop sweat the tech industry has been in lately? Welcome to the new economic environment.

In November 2021, in response to inflation, the Fed announced it would hike interest rates. It's not done, either - the Fed has indicated it will continue to hike until enough of us are unemployed. I'm sure the Mr. Burns-steepling-fingers style the Fed is taking is just a coincidence.

This is a big deal because the Federal Reserve has kept interest rates low pretty much since the 2008 financial crisis. Borrowing money is now more expensive than it's been in over a decade. That means that a lot of investors aren't being forced to look to stocks for returns - they can invest in bonds or treasuries instead. And that changes some things...

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