[ghaff]

It also strikes me as an interesting question how much collateral damage will result from bubble deflation if it happens. Other events in 2000/2001 contributed (post-Y2K, 9/11) but dot-bomb also had a big effect upstream because all those startups were pumping crazy money into big IT suppliers like Sun, EMC, and Cisco. So the bubble bursting had huge ripple effects. I'm not sure a burst bubble that's mostly about outsize valuations for web startups with no business models today would have the same sort of impact.

[taurath]

All those startups are pumping insane amounts of money into the entire region of the SF bay area, to the exclusion of nearly all other locations - no matter what, it will massively effect the economy of the bay area.

[ghaff]

I'm not convinced though that the money being pumped in by those startups (as opposed to the big tech companies that are making money) are of the same order as when the first thing any startup did was to buy a few $M worth of proprietary hardware.

[nosuchthing]

Real estate is siphoning hard off the Bay Area.