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by adam mathes
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Money For Nothing

The phrase “money is free in the new economy” keeps coming back to me.

I remember first hearing it during a speakers series in college and it having a profound impact on me. (Sadly, I can’t find any references to it other than me making a joke about it on this site years later in an unrelated post, and my notebooks from that time are long gone.)

What the speaker meant was was the cost of capital was historically low, therefore we little Stanford student future entrepreneurs shouldn’t worry about borrowing money for our big bold ideas.

Because money is free in the new economy!

At the time this just made me think venture capitalists must be crazy, that’s not how investing is supposed to work, and the tech sector must be on the brink of disaster.

Which it was, as this was just near the end of the first tech bubble.

Now, more than a decade later, it sounds crazy in completely different ways to me because it’s a lot closer to being right than I could have imagined.

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