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Three reasons for techmageddon right now. (1) USA had a boomer savings bubble 2010-2022 with boomers in the peak savings years of their lives, resulting in th
by williamDafoe 2y ago
Three reasons for techmageddon right now. (1) USA had a boomer savings bubble 2010-2022 with boomers in the peak savings years of their lives, resulting in the lowest interest rates in a century, never to return, (2) Covid19 created a work from home and therefore tech bubble, pulling lots of demand forward, (c) IMHO after a decade of lies from FAANGs about how easy it is to get a $200k salary, and how easy it is to sustain these 60hr/wk jobs (impossible; turnover rates are very very high on purpose), all schools are overproducing CS grads. The three of these mistakes have created a perfect storm, worse than the Y2000 bubble ...
- badpun 2y agoWeren't high turnover rates at FAANGs largely due to people job hopping to other FAANGs for even higher salaries?
- ai4ever 2y agoBeing an old-timer in the valley, I was shocked to see the pay-packages from FANGs starting in about 2012 or so when facebook went IPO. The monopolies and new-age SAAS companies (meta,google,netflix, salesforce, servicenow) went crazy in the comp for sw engineers, and the others had to play catchup. Specifically, the companies used RSUs which could be hidden in non-gaap earnings statements. gaap earnings were ignored in the zero-interest era for high growth sw firms. The more established (low-growth) firms from a previous era (cisco, ibm, hp) saw the unsustainability of the comp structure, but could not do anything.
- jldugger 2y agoIf you think IBM or HP responded the way it did because of "sustainability" of accounting, well, I have a bridge to sell you.