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I definitely think there is a lot of pump and dump action going on in the software startup world, but then again a huge amount of software engineers are guilty
by gavanwoolery 13y ago
I definitely think there is a lot of pump and dump action going on in the software startup world, but then again a huge amount of software engineers are guilty of riding this money wave by association. It might be an artificial economy, which is morally bankrupt, but I can't help but think at times that anything that keeps the blood pumping is good for the overall economy (could very well be wrong there).
Of course, once I go down that rabbit hole I have to start patting government contractors on the back for circulating money at the expense of taxpayers. I guess the overall question is: is an artificial economy better than a stagnant economy?
- pfraze 13y agoSome interesting thoughts on that by Steve Randy Waldman [1]. In this snippet, he's asking whether bubbles promote useful innovation: He went so far as to suggest that agency problems in the delegated investment process, specifically the inability of career-minded fund managers to stay away from bubbles regardless of any personal reservations, make an important contribution to innovation. Steven Fazzari (whose work on inequality this blog has featured before) described research showing that R&D expenditures of young firms are constrained by external finance and increase in bubblicious periods. Ramana Nanda investigated whether investments made at the top of bubbles were poor, and found that they were not. They were just riskier. Firms funded by venture capitalists in heat were unusually likely to crash and burn, sure, but they were also unusually likely to succeed spectacularly. 1. http://www.interfluidity.com/v2/5066.html http://www.interfluidity.com/v2/5066.html
- gavanwoolery 13y agoThanks, interesting :)