ZIRP (Zero Interest Rate Policy) created many distortions in the world.
When it comes to technology and fintech companies, there are two big ones:
1. The biggest companies hired thousands of engineers and stuck them in the middle of the company to work on *meh* projects. Now those people are in the market carrying those names on their resume and it's hard to tell just how good they are (anymore...).
2. Business models that cannot survive were perpetuated. Some examples are fundamental to the business and others are a broader problem with the concept. You can see this across technology but in fintech you can:
- cancel someone's subscriptions until you've done all of them and then...
- negotiate down someone's bill until you've done all of them and then...
- get rid of nuisance fees until you've gotten rid of all of them and then...
- eliminate trading fees on stocks and then...
- reduce investment fees to almost nothing and then...
... and then... you're done.
The argument is supposedly that the underlying user data that you get has a lot of value in and of itself. I find it unlikely that this is true for most of the companies created (and some acquired) for the ideas above (and more).
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