Thanks to Marry Meeker for putting out this slide on her latest Awesome Web 2.0 presentation about the "State of the Web". This slide struck me the most as a concern for investing in the future of technology. Until the US Government cuts spending by 50% and gets out of the private sector way we are going to be in stagnant economy for a long time. This slide is telling me a few things need to happen before our economy has even a chance of turning around. In Wallstreet terms, I think we need the great capitulation of Government spending in order to right the private sector economy. I will not get too excited about private sector investing until the following questions are answered . . .
- Should US Government spending crash like the stock market?
- Will industries that rely on Government spending be crushed?
- Has the Federal Reserve lost all credibility with the markets?
- The VC industry shrunk by 80% in the last decade so why not the Government?
- Rising interest rates might actually be good for the "real economy"?
- Are currency wars are going to get even more intense?
- Is the US the new emerging market carrying highest investment risk?
- Where & when will the next tech industry boom (ie jobs) come from?
- Is the Obama administration trying to kill capitalism vs government spending?
- When will kicking the Government debt can down the road STOP?