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Considering the housing bubble peaked 5 years ago, way before FB was valued at $100B, and has been deflating ever since, I find your connection tenuous, at best

Considering the housing bubble peaked 5 years ago, way before FB was valued at $100B, and has been deflating ever since, I find your connection tenuous, at best.

samstave 14y ago
Well, it appears to be an individual's housing bubble in the personal cases if the FBs that did buy their houses that way. It's a hard lesson. I have been burned on the promise of options too many times to believe that they will ever turn out like goog did. Sucks for the employees of FB, but I am happy that we are seeing sanity in the valuation and it is not insanely over inflated via hype.
harlanlewis 14y ago
"Across the country, home values fell 15% to 60%, peak to bottom, depending on the area and how badly it was affected by foreclosures — most of San Francisco got off comparatively lightly with declines in the 15% to 25% range." In SF, the bubble was effectively flattened. Other areas saw loss of value beyond pre-bubble prices. Quote from one of many available sources, this one comes with graphs: http://www.maureenterris.com/?p=2557 http://www.maureenterris.com/?p=2557 SF/Silicon Valley was insulated against the rest of the country's housing crisis largely due to its strong tech sector, which didn't suffer the recession as severely. I don't know about people using pre-IPO stock to get loans, but the connection is less tenuous than you might expect.
fkdjs 14y ago
And the bubble deflation barely touched the silicon valley, thanks to employees in the valley engaged in bidding wars on homes. Yes it deflated a little, but that's peanuts compared to other parts of California where people literally lost their entire net worth. Combine Facebook employees, Apple employees and investors from China and you have another bubble.
smsm42 14y ago
It peaked 5 years ago, this is true, but check out the house values in some neighbourhoods of Palo Alto, Menlo Park, etc. Here's a random 3br house in Menlo Park: http://www.zillow.com/homedetails/1328-Orange-Ave-Menlo-Park-CA-94025/15594333_zpid/ http://www.zillow.com/homedetails/1328-Orange-Ave-Menlo-Park... You don't see huge deflating going on, right? Prices have fallen a lot in some places in the Silicon Valley (like San Jose), but remained quite high in others, primarily on the expensive (1M+) end of the market.

Considering the housing bubble peaked 5 years ago, way before FB was valued at $100B, and has been deflating ever since, I find your connection tenuous, at best.

samstave 14y ago

Well, it appears to be an individual's housing bubble in the personal cases if the FBs that did buy their houses that way. It's a hard lesson. I have been burned on the promise of options too many times to believe that they will ever turn out like goog did. Sucks for the employees of FB, but I am happy that we are seeing sanity in the valuation and it is not insanely over inflated via hype.

harlanlewis 14y ago

"Across the country, home values fell 15% to 60%, peak to bottom, depending on the area and how badly it was affected by foreclosures — most of San Francisco got off comparatively lightly with declines in the 15% to 25% range." In SF, the bubble was effectively flattened. Other areas saw loss of value beyond pre-bubble prices. Quote from one of many available sources, this one comes with graphs: http://www.maureenterris.com/?p=2557 http://www.maureenterris.com/?p=2557 SF/Silicon Valley was insulated against the rest of the country's housing crisis largely due to its strong tech sector, which didn't suffer the recession as severely. I don't know about people using pre-IPO stock to get loans, but the connection is less tenuous than you might expect.

fkdjs 14y ago

And the bubble deflation barely touched the silicon valley, thanks to employees in the valley engaged in bidding wars on homes. Yes it deflated a little, but that's peanuts compared to other parts of California where people literally lost their entire net worth. Combine Facebook employees, Apple employees and investors from China and you have another bubble.

smsm42 14y ago

It peaked 5 years ago, this is true, but check out the house values in some neighbourhoods of Palo Alto, Menlo Park, etc. Here's a random 3br house in Menlo Park: http://www.zillow.com/homedetails/1328-Orange-Ave-Menlo-Park-CA-94025/15594333_zpid/ http://www.zillow.com/homedetails/1328-Orange-Ave-Menlo-Park... You don't see huge deflating going on, right? Prices have fallen a lot in some places in the Silicon Valley (like San Jose), but remained quite high in others, primarily on the expensive (1M+) end of the market.