Investors in risky asset classes “massively benefitted” from years of ultra-easy monetary policy, Chamath Palihapitiya, founder and CEO of Social Capital, said at an Axios event Wednesday.
Chamath made his name as a boastful memelord, leading a crowd of retail investors into SPACs and crypto. Now he’s wearing a dark suit, talking about risk-adjusted returns and intellectual rigor, and remorsefully saying that he was blinded by zero interest rates. Everything he did at the height of the boom, he now says, was just an “experiment” in terms of generating returns for his investors.
With inflation perched near 40-year highs, the Federal Reserve is embarked on its most aggressive tightening campaign in decades — reversing years of zero interest rates that fueled massive speculative bubbles, Palihapitiya acknowledged. Read more.
