Friday, October 21, 2011

Silicon Valley Boom: Venture Capital Investment Soars 29%

More Bernanke money flow hitting the economy.

U.S. venture capital investment soared 29% in the third quarter, with investors pouring $8.4 billion into 765 start-ups, MarketWatch reports


  1. Wow! Good job on making that call a few months ago.

    I wonder if this has anything to do with the government's ramping up of "cyber-security". If there is anything that I have found to be helpful in understanding why certain things happen in an economy, the first thing would be to watch the money supply aggregates, the next is to watch what sectors of the economy in which the government is becoming more influential. If monetary policy is loose, deposits are multiplying, and the government is favoring and/or "investing" in certain sectors, chances are that you'll see some bubble activity in those sectors.

  2. Mr. Wenzel,
    There is over 40 trillion dollars of public debt, and there is over 600 TRILLION in derivative exposure (JP morgan alone has 90tril)!!!! - that needs to clear, and the market will insist on that one day. All I'm saying is there is still major deflationary pressure that hasn't even been close to being offset by inflation - Not Even Close! Check the numbers dude. The money printing has to kick into overdrive or we face another 08' like crash which would then be followed by high inflation (and no, I am no fan of Robert Prechter).

  3. It would help to understand where VCs get their funds. I strongly suspect that a large portion comes from investment banks and other recipients of Bernanke's largesse.

  4. Anon@810pm-

    That near quadrillion in "fake" money, leveraged and multiplied yet ephemeral, is the reason that a "great reset" is needed. It's not "real" money- it's bets and arbitrage and speculations based on "fake" money.

    There is no easy way out of this mess. The "paper rich" will fight tooth and nail to protect what they think they own, and in the end we will most likely see a radical devolution of power and wealth, with many regions deciding to secede at the national and even state level. Corporate owners will have a hard time reclaiming ill-gotten gains (BoA, Citi, GM, GE, etc.) from regions that have pursued this new path. Blood will be shed. Fortunes will be made, and lost.

    Watching the farce in the EU around the impossible economic situation they face, the impending implosion of China, and the "hopium" stupor that is supporting the US market, it makes me wonder if the Aztecs were right- the world (as we know it) might end in 2012. If so, we will all be better for it.