Hello everybody and thank you for tuning in to the weekly report.

The Federal Reserve's Magic Trick, Big Tech. Now you see it maybe soon you won't.

Over the last year the seeming ability of stock values of many technology companies

to keep rising forever met resistance. These were the result of both bad decisions and changing

market conditions. For example the end of COVID lockdowns obviously reduced

demand for Amazon's delivery services. Also an increasing number of people are leaving Facebook

and other metasites for newer social media sites. Many of those who use social media for

political organization, education or discussion are abandoning Facebook and YouTube for sites

such as Rumble, sites that don't de-platform individuals for sharing opinions and news that

displaces woke bureaucrats and politicians. The magician in this scenario the Federal Reserve

played a major role in big and medium and small tech's rise and fall. Technology writer David

Stridefeld writing in the New York Times recently examined how the Fed's 2008 market meltdown

related policy of near zero interest rates led many investors to throw money at tech companies.

In many cases these investors would not have bought tech company stock had the Fed not

distorted the signals sent by interest rates which are the price of money. The historic expansion

of the Fed balance sheet thanks to quantitative easing also helped create a tech bubble.

Now that the Fed is raising interest rates although still keeping them well below what they would

likely be in a free market the tech bubble is being popped as investors are able to get a more

realistic view of tech companies values. This is causing a painful but necessary correction.

For example, Carvana which aimed to be the Amazon of used cars went from an 80 billion dollar

valuation to a 1.5 billion dollar valuation a 98% loss in just 18 months. Also the Fed created

tech bubble allowed Amazon to lose millions of opening new businesses including physical bookstores

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