The Fed raised rates. Then suddenly there was a big sell-off in the markets, adding to Tom's argument that knowing the news cycle in advance has little to no effect on an efficient marketplace. Systems are put in place for a reason. But does that same efficiency push companies to establish monopolies to survive or is this an antiquated remnant of business practices that go back to the Industrial Revolution? Can it even sustain itself in a highly capitalistic world that is rife with competition, and does it even apply to today’s modern markets?
Tom equates monopolizing an industry as the go-to strategy of the big dumb animal (elephantine monopolies) - and the disruptors are the small but wily field mice. Those creative thinkers and entrepreneurs who live to disrupt and shake up those massive conglomerates to their core. And they often do. Those that try to hoard the entire pie instead of sharing with the masses are setting themselves up for extinction.
Those innovators (field mice) will eventually and quite purposefully give them a run for their trillion-dollar money. Is the rate of innovation and subsequent lowering of barriers to entry forcing companies to seek a monopolistic advantage in order to insulate themselves from the competition? Insulation is, at best, a myth and, at worst, a house of cards. Tune in and hear Tom and Dylan figure it all out on this week's episode.
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