6 ms·
That could be true but the impact would still be limited compared to 2008. Credit/bank failures are far worse for the general economy than some tech startups fa
by ripper1138 4y ago
That could be true but the impact would still be limited compared to 2008. Credit/bank failures are far worse for the general economy than some tech startups failing.
- sebmellen 4y agoI'm not 100% sure of that. Think of how many services depend on tech, and how much of that tech is built by companies operating at a loss. For example, if Cloudflare were to do mass layoffs, and potentially fail/go bankrupt, what would the ripple effects be on enterprises throughout the US?
- harpratap 4y agoNegligible. Cloudflare is tiny compared to AWS, which itself is a fraction of total computer infrastructure. On-prem is still big, reason why cloud companies keep showing massive growth.
- mym1990 4y agoI don’t think that tech companies are the systemic risk here, but they could certainly start the chain of events. In 2008 the governments and central banks had tools to use to try to bring us out quickly. Todays risk involves the possibility of stagflation, which is a long slog to get out of.