Briefs

[Ratbert_2008]

Oversubscribed funding.

Much appreciated oversubscribed investors. Thank you.

A brief shouldn't be misleading.

From the article:

Though the company described the round as “oversubscribed,” the $22 million falls far short of the $125 million that the company was reportedly seeking. Adam Rodman, chief investment officer at Segra Capital, told The Globe and Mail that the $22 million was “the least amount of capital possible” to help the company hit the next scientific milestone.

 

[licks2nite]

Everybody ready for this:

In 1999 realization many tech startups lacked viable business models and central bank increased interest rates.

In 1965 higher interest rates and tight money policy the central bank discount rate set higher than the federal funds rate to encourage banks to borrow from each other first before using the central bank.

In 1929 after a long period of speculation seems folks ran out of credit borrowing to buy more stock. Investors started getting out. Folks lost collateral in declining stock value forcing more stock selling further depreciating stock values and more stock sales.

President wants lower interest rates today obviously enough to keep markets up. But capitalism doesn't work in a low interest rate environment. Excess market valuations leave investors vulnerable to unexpected, exogenous events.