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I agree with you on the graph--very poorly constructed, and the time interval is too short. But: Calling internet startups a bubble in the same breath as the h
by achompas 16y ago
I agree with you on the graph--very poorly constructed, and the time interval is too short. But:
Calling internet startups a bubble in the same breath as the housing market bubble is doing a disservice to the readers. ... All sorts of people were borrowing 100k against their new found home equity to "invest" in their home, despite the fact that homes have no revenue, while the majority internet companies do.
I wouldn't go as far as saying this comparison is a "disservice." Sure, the article is judgmental and poorly researched. But when Patricof says there is "probably a bubble in the number of start-ups," well, that's supported by what we've heard recently.
Don't we see Ask HNs from failed founders who took out a large amount of savings to start their companies? And don't we keep hearing about how more people are starting businesses while their opportunity cost is low during the recession? These are traits we share with the housing bubble, and they shouldn't be ignored.