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by momavujisic
3988 days ago
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Are people still spouting "dotcom crash v2.0" nonsense? I agree that valuations are abnormally high (although not higher than those during the dotcom bubble) and that a correction is due soon however, this time really is different in the sense that the damage will be largely contained to those with enough money to throw down on startups (VC/PE funds, institutional investors). For better or worse, tech startups are staying private longer, holding private IPOs and generally staying away from the scrutiny of the public market while at the same time insulating the general public from a crash. What will largely suck will be the uptick in unemployment not just from failed and failing startups having to lay off employees cause of lack of funding, but the associated kill-off of the entire services-for-startups industry. Did I mention the lack of funding? That'll also suck for newcomers who came at the wrong time. |
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I think you are seriously underestimating the financial consequences of billions of dollars in capital vaporizing or otherwise being sucked out of the financial system.
The 2007 financial crash wasn't largely contained amongst the buyers and holders of mortgages in Florida, Las Vegas etc; it was felt clear across the globe.
I don't imagine any "correction" will be on that scale, but I also wouldn't describe it as self-contained.