3 ms·

Who cares if we're in a bubble or not? A sound business strategy is sound regardless.

• phdp 11y ago
  Everything has risk. During bursting of bubbles, there is a "flight to quality." If you run out of cash to fund your business and you cannot secure financing because the rate of return vs the risk is not attractive to investors, you will go out of business. Those businesses who can survive without outside investments will fare better, but even consumers can be affected by a bursting bubble via layoffs, media talking heads, etc. They may be less willing to spend on unnecessary expenses. This means less revenue and likely profit for the businesses.
  • jurymatic 11y ago
    I agree, but I think the problem you're highlighting is intrinsic to business models that emphasize growth over money making more than it's intrinsic to bubbles.