Money Is Pouring Into Tech Like It’s 1999—And That’s Not Good

[Starry Messenger]

I was around for the first tech meltdown. Looks like we're getting the sequel soon.

http://www.wired.com/2014/09/money-pouring-tech-like-1999and-thats-good/

When respected venture capitalist Bill Gurley said tech startup investors are taking on a level of risk not seen since the dotcom bubble days, the reaction in Silicon Valley was a collective sigh of relief: Finally, someone was saying what everyone was thinking.

In a piece published last week, Gurley told The Wall Street Journal that the huge amount of capital pouring into startups—and the great expectations all that money represents—is forcing new companies to spend more, and faster, than they have in 15 years. So much spending sets companies up for a fall if the funding dries up and they still have big bills to pay.

Despite Gurley’s warning, however, many companies and investors are in too deep to restrain themselves. If your competitors are spending, you must spend too. According to public data, the industry doesn’t appear to be as overextended now as it did at the height of the dotcom bubble. But Gurley isn’t reassured.

<snip>

[yallerdawg]

1. After the Great Recession...

in a stagnant economy, with so many people living paycheck to paycheck, unemployed/underemployed, and just checked out of the American economic system, the oligarchs managed to continue their great game of creating wealth for themselves out of nothing. The economic elites and the political class are in lock-step now reassured that the 'little people' will bail them out - there is no risk.

We are so screwed, unless we change things. That requires enlightening the dim, dull masses and utilizing democracy.

Well?

Ready for Hillary?

[redruddyred]

2. my guess was

that they had nothing better to do with their money than invest it into stupid shit.

never occurred to them to pay their employees better.

we're overflowing w/ capital, and yet still people protest upping taxes for the rich.