Over 20 years ago we made an indie film called Purpose. We were trying to explore the connection between making money and making a difference. Entrepreneurs, I believe, are driven by passion and excitement to do something that they feel people will want and value. And when they get it right, they make money. Sometimes though, people forget the mission and focus only on the bottom line. These become poor businesses, even if they make buckets of cash.
Fast forward to the pandemic and the money printing extravaganza that took place over those two years, and today the world is in a situation where inflation is sky rocketing and the markets are anxious. This is the age of the day traders and the Bitcoin gurus. No one wants to work any more. Speculating, er, gambling, seems to be the the new norm. There are still are entrepreneurs out there, breaking ground, but so much bad product comes to market, especially in the tech world. This is largely because of venture capital funds that fuel these half-baked ideas. Too many things are rushed to market with unicorn tinted goggles. Purpose has taken a back seat. Profits don’t even seem to be important. Grow and flip. Who cares about the foundations. Financial engineering is the name of the game because the fundamentals are not that evident any more.
The subprime mortgage crises which erupted around 2008 in the US was never dealt with head on. Just a few slaps on the wrist and the can got kicked down the road. That mess contributed to the rapid rise in American home prices and it was the start of some serious bad shit. At some point though someone has to pay the price for all this greed. I reckon this has been on the cards for a while and it is about to come and bite us all in the ass. A serious reckoning is coming. I am surprised it has taken this long, but it is coming. I am pretty convinced of it.
There are still the constant crazy tech evaluations based on high earnings multiples. It feels like there is a big bubble that is set to deflate. I am not sure about burst, but this party can’t go on forever. The money printing has stopped, and the inflation we are experiencing globally is intense. From food prices to fuel to just about everything. It is hurting the masses.
The war in Ukraine, which makes me very sad, is a catalyst in this perfect storm. There is a lack of unity in the West and weak leadership. And dictators are having a field day. Putin has spurred them all on. The war in Ukraine may have dropped off your social media feed but what we are starting to see is that food prices and energy costs are going up and up. And this affects everyone. There are some very tough times coming to the world. The pandemic was a walk in the park. The biggest disease in the world is greed, and it is out of control and we are all going to pay the price.
We got to get back to the fundamentals. Can we? I think so. We need the crypto guys to save us all. Now there is an honorable profession. I have met a bunch of people over the last few years that they tell me they are working in crypto. I honestly don’t understand what that means. I understand technically what is crypto, but how one makes a career out of this stuff is beyond me. Do you they mean they are trading crypto for a living or are they investing in crpyto oriented businesses? Interestingly, most of the crpyto folk I have chatted to seem like nice guys. I just don’t understand what they do. Not that this matters. As long as they are having fun. Ah. yes, fun. The last two decades have been a ball. I could be wrong, but I think there is a big hangover coming this year. The luck is running out.