> - In Europe, getting funding is literally like pulling teeth.
Because Europe was not able to print unlimited Euros to flood its economy with free cash like how the US was able to do it thanks to the reserve currency status of the dollar. But no worries - now that dollar's monopoly is ending, the American investment landscape is also coming down back to Earth. US startups and companies wont be able to burn endless amounts of shareholder/investor money to out-compete and kill all competitors anymore. That should allow all regions in the world to be able to compete.
> That was at least how things used to be. US has a long, long history of (risk willing) VC investments - while European countries have been lagging far behind
> Europeans hate risk
Right, that's because Europe did not have zirp-enabled free cash. You can dump millions on all kinds of ideas including dumb ones when you have free cash and still see 1% of them make it big even if 99% of them fail. But when you don't have free cash, you have to be careful.
So finding investment wasn't a problem or issue of the European culture or business landscape. The US being able to burn cash on even dumb ideas thanks to zirp made it appear like it was a problem.
zero-interest-rate-policy-enabled, i.e. it's a reference back to the prior paragraph. But I don't think the US government's money-printing tells the full story. There's been just as much "cash" created by stock market overvaluations and un-backed securities.
> There's been just as much "cash" created by stock market overvaluations and un-backed securities.
Yes, though they originate from the free-cash printing. Both through the central bank (Federal Reserve) and private banks that were allowed to do fractional reserve lending, the US infused immense cash into its economy, which led to all the phenomena you mentioned. Because in countries that cant have zirp, such overvaluations of stocks and securities are scarce. Indeed, the derivatives market took a life of its own and created derivatives of derivatives backed by derivatives that were loosely tied to real-world assets and that also contributed to the bloat. But the real deal was always the zirp.
Because Europe was not able to print unlimited Euros to flood its economy with free cash like how the US was able to do it thanks to the reserve currency status of the dollar. But no worries - now that dollar's monopoly is ending, the American investment landscape is also coming down back to Earth. US startups and companies wont be able to burn endless amounts of shareholder/investor money to out-compete and kill all competitors anymore. That should allow all regions in the world to be able to compete.
> That was at least how things used to be. US has a long, long history of (risk willing) VC investments - while European countries have been lagging far behind > Europeans hate risk
Right, that's because Europe did not have zirp-enabled free cash. You can dump millions on all kinds of ideas including dumb ones when you have free cash and still see 1% of them make it big even if 99% of them fail. But when you don't have free cash, you have to be careful.
So finding investment wasn't a problem or issue of the European culture or business landscape. The US being able to burn cash on even dumb ideas thanks to zirp made it appear like it was a problem.