[345723]

A lot of it has to do with the bubble economy. A bubble economy doesn't create substance, it just focuses on returns. Ever since the bailout, money has been cheap and "tech" showed some of the best returns—second only two developing markets.

Google and Apple have record revenues and profits and are propping up everything else. Everyone, including Facebook, thinks they are going to be the next Google. And as long as money remains cheap, it will keep flowing into tech without bounds. You look at a company like LinkedIn—a company with a P/E near 1000—and you can see is clear as day. Even sustainable businesses like Amazon have had their stock price inflated through the roof with cheap money looking for a good return.

When the bubble pops things will reset in the Bay Area. Money will go somewhere else and only the companies which have real businesses will survive. Right now, money is still cheap. Investors will continue to invest in cool apps, and public companies will continue to purchase those apps with funds from the people's retirement to stay relevant. Just like with every bubble, the person on the hook at the end of the day is the average citizen.