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The economy hasn't made sense at all over the past 10 years. Companies have been hiring people just for show. Startups are all about putting up smoke and mirror

The economy hasn't made sense at all over the past 10 years. Companies have been hiring people just for show. Startups are all about putting up smoke and mirrors to appeal to a bunch of dumb investors. Snap never made a profit in almost a decade yet its market cap is $17 billion. Uber hasn't made a profit in over a decade, market cap is $50 billion. If you want to understand why things are like this, just look at how the Federal Reserve Bank of the United States is constantly injecting new fiat money into the economy and you will have all the answers.

ornornor 7y ago
Sounds like a pyramid scheme: invest in a startup first so that you find other investors for a subsequent round so that you can IPO and sell it all off to the next suckers who are hoping to do the same. Just don’t be the one left holding the bag.
- cryptica 7y ago
  And the worst part is that all these people who were hired were misused for bureaucratic purposes and so their practical skillsets have atrophied. Then when the big burst arrives and these people are collectively fired, they will be totally unprepared and incapable to adapt their skills to the economic reality that they were shielded from by their previous employers.
anongraddebt 7y ago
I agree that there seems to be deep economic rot somewhere, but I'm not sure Snap and Uber are particularly near the center. I haven't looked at their 10-Ks in awhile, but aren't at least one of them cash flow positive already?
- cryptica 7y ago
  >> but aren't at least one of them cash flow positive already They're all cash flow positive if you count the constant stream of cash coming in from investors and bank loans. But at the end of the day, anyone, doing just about anything can take $10 and turn it into $9.
jazzyk 7y ago
This. Yet, all my highly educated friends think Federal Reserve has been doing a great job at "stabilizing the economy". Ignorance is strength, after all.

ornornor 7y ago

Sounds like a pyramid scheme: invest in a startup first so that you find other investors for a subsequent round so that you can IPO and sell it all off to the next suckers who are hoping to do the same. Just don’t be the one left holding the bag.

cryptica 7y ago
And the worst part is that all these people who were hired were misused for bureaucratic purposes and so their practical skillsets have atrophied. Then when the big burst arrives and these people are collectively fired, they will be totally unprepared and incapable to adapt their skills to the economic reality that they were shielded from by their previous employers.

anongraddebt 7y ago

I agree that there seems to be deep economic rot somewhere, but I'm not sure Snap and Uber are particularly near the center. I haven't looked at their 10-Ks in awhile, but aren't at least one of them cash flow positive already?

cryptica 7y ago
>> but aren't at least one of them cash flow positive already They're all cash flow positive if you count the constant stream of cash coming in from investors and bank loans. But at the end of the day, anyone, doing just about anything can take $10 and turn it into $9.

jazzyk 7y ago

This. Yet, all my highly educated friends think Federal Reserve has been doing a great job at "stabilizing the economy". Ignorance is strength, after all.