Re:Bubble Bubble Everywhere
by timr on Tuesday December 04, 2007 @07:02PM
(#86166)
Indeed. We're not in a tech bubble -- we're in a real estate bubble. And as far as the crash of that market is concerned, we're still in the early part of March 10, 2000. The real pain has yet to begin.
The bottom line is that I wouldn't go whistling past the graveyard quite yet. A truly astronomical amount of debt has been accumulated by normal (i.e. not rich) people in the process of puffing up US home values. Unlike the dot-com crash, a worst-case scenario in the housing market wipes out the finances of a huge block of US consumers. And without free-spending, US consumers you can kiss the market for most small internet companies goodbye.
The apocalypse doesn't have to come from within; the people who are worried about a "tech" bubble aren't paying attention.
The bottom line is that I wouldn't go whistling past the graveyard quite yet. A truly astronomical amount of debt has been accumulated by normal (i.e. not rich) people in the process of puffing up US home values. Unlike the dot-com crash, a worst-case scenario in the housing market wipes out the finances of a huge block of US consumers. And without free-spending, US consumers you can kiss the market for most small internet companies goodbye.
The apocalypse doesn't have to come from within; the people who are worried about a "tech" bubble aren't paying attention.