3 ms·

> The last time we had such a shift, in 2000 Nah. This happened again in 2008.

• fragmede 7y ago
  Parent comment is a bit terse so let me explain a tiny bit more. While the 2008 financial crisis itself was precipitated by real estate mortgage shenanigans, as the dust was settling and thereafter, it became very difficult to secure funding, at least compared to before. Banks, under renewed scrutiny by regulators, became so risk adverse that the fed's lowered interest rates, which made money "cheaper", were nigh unwilling to lend money to all but the strongest borrowers. But then the strongest borrowers needed cash the least. It's that wave of cheap money that we're riding, with banks having satisfied regulators and new regulations enacted in the wake of 2008, that has led us to where we are today. Companies with invented valuation and unconvincing financials going public, or trying to, in WeWork's case.