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But the people giddy for the collapse of tech are going to be thrilled! The tech bubble continues to persist because people don't know where else to put their
by time_to_smile 4y ago
But the people giddy for the collapse of tech are going to be thrilled!
The tech bubble continues to persist because people don't know where else to put their money. The tech bubble started because of the 2008 crash, investors needed a place to park their cash to see it grow, and tech seemed the best bet. That plus cheap capital meant throwing everything into tech no matter how ridiculous the fundamentals were.
If this is really a trend we'll see the expedited crash of tech as money floods into manufacturing.
- ch4s3 4y agoThere are plenty of tech companies that build real products and deliver real value. Some of them even take VC money. There will probably be less money flowing into businesses that look to grow to category dominance in the B2C space, but there's still so many places in the economy that could see productivity gains from adopting boring tech.
- schrodinger 4y agoI think the Warren quote about "when the tide goes out, you realize who's naked" applies here. Tech is in every industry at this point, so it feels unlikely to fully crash as a sector. The recession and lack of cheap VC funding will expose the companies that don't actually have a reasonable business plan, but leave those that do. In other words, "make up the losses on volume" speculative companies will have a winter, but solid businesses (so many! medical equipment, logistics, entertainment, self-driving car progress) will weather the storm ok.