Is Innovation A Byproduct of Money?
Tom and Dylan take the larger case for whether the financial systems in place are structurally sound, going all the way back to the housing and stock market crash of 2008 and 2009. Lending companies went unchecked giving people with poor credit, mortgages. Loans that predictability went into default. Instead of addressing the problem, the Fed flooded the markets with free money. Something that the markets enjoyed for 10 years. Tom disagrees because aside from what the Fed decides to do, markets are cyclical. Unlimited capital pull funds business development and innovation. They land on the broken corporate tax code. No private equity firm or venture capital firm cares about a good idea, according to Tom. The debate continues on today’s Truth or Skepticism.