Any econ majors able to give me their best tldr of what this means or will result in if anything? I can’t wrap my head around how money and debt works sry
I’m not an econ major but I’m going to give you my theory anyway.
We’ve been circling the drain on a major global recession for two years. We’ve been avoiding it through sheer denial.
Nobody ever mentions it, but tech stocks were the first to take a beating in 2008. The reason is that they’re actually kinda worthless and just a place where billionaires gamble the way trust fund kids do with cryptocurrency. There’s just not really that much collateral in digital property. Unlike land, it’s value can just disappear overnight if people decide it’s uncool.
When asset managers are about to be called on their bets and have to find money somewhere, the first thing they’ll do is sell tech shares to bail out other investments. Houses will always have some value even if you end up having to manage it yourself, whereas any social network risks going the way of MySpace.
Twitter being in trouble isn’t just a sign that twitter is in trouble, but that investors need that money for something safer, and if they’re looking for something safer that may mean sheer denial isn’t working anymore.
