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To put it another way, the cost of real estate in a given area is proportional to the rate of money flowing through that area. Will ever larger flows go through
by Finnucane 10y ago
To put it another way, the cost of real estate in a given area is proportional to the rate of money flowing through that area. Will ever larger flows go through New York and San Francisco, increasing without end? History suggests that is unlikely.
- elastic_church 10y agoWell the frothiness of the tech bubbles are purely a factor of a lack of liquidity of meaningful services to create. VC capital focused on tech is a tiny sliver of available capital given the sources VCs get their funding from, and an entire order of magnitude of greater flows could come through. So if you were using that as an excuse not to buy that costly condo on the island or peninsula, its not a great excuse.
- mcguire 10y ago“The market can stay irrational longer than you can stay solvent.”
- elastic_church 10y agoYes, much much longer or macroeconomic events can spook a few relatively large funds and dry up funding. Keep building! There's a very large ecosystem and a lot of continually generated capital that merely needs to be convinced that the tech sector is the place to park it.
- ozim 10y agoMarket growth is showing that you are not correct. Market is going up all time, S&P 500 even if bubble burst around 2008 and 2000, now we have prices almost twice as high. So it is true that more and more money will flow to those places.