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by simianwords 195 days ago
How do you prove that software development is a bubble?

Stock prices are at all time high and continuously growing.

1 comments

> How do you prove that software development is a bubble?

By looking at the software development market. How else would you do it? Salaries rose sharply from 2020-2023, but then plateaued and are now starting to decline. Slowly, however. It did not crash. It ticks the boxes: Rapid price appreciation, speculation, a disconnect from fundamentals, widespread media attention, and an eventual correction.

> Stock prices are at all time high and continuously growing.

If we're sharing random facts: Global average temperature is also at an all time high and continuously increasing.

1. the labour market has not much to do with whether it is a bubble or not

2. definition of bubble is that the market cap must precipitously reduce, which it hasn't.

> the labour market has not much to do with whether it is a bubble or not

How can the very market we're talking about not indicate whether there is a bubble in that market or not? Do you think we should be looking at the price of soybeans instead?

> definition of bubble is that the market cap must precipitously reduce, which it hasn't.

Incorrect. It has, just not by very much. Which isn't surprising as we already established that there wasn't a crash.

What is your definition of bubble then? If not by market cap?
Why read comments in isolation? We already went over this:

- Rapid price appreciation

- Speculation

- A disconnect from fundamentals

- Widespread media attention

- An eventual correction

If market cap, how do you explain housing bubbles? Market cap is not applicable to housing.

of course market cap of housing went down! individual houses fell down in price.

that didn't happen for tech stocks. you are making your own definitions of bubble - the sufficient thing to happen is for the market cap to go down precipetously which it didnt.