2. I do not think that Apple, Google, and Facebook are significantly competing against many of these startups. Facebook maybe to an extent, by not Apple and Google. None of them are major phone manufacturers or search engines. The only reason a bubble bursting is a problem is for companies without revenue relying solely on VC money to run. Apple is not in fact relying on VC money to run. Apple alone can afford to employ every startup worked in SF (not that they would, but they could)
>3) Real estate values and rents in the bay area will plummet of there is a readjustment in the technology sector.
I can't imagine that as being anything but good news long term. certainly sad for those owners now though, i agree. Yet, still not everyone in america.
1) What makes you think there is room at AppGoogBook for those unemployed startup engineers? If the bubble bursts, it'll be because of a reality-check in the growth potential for consumer technology and advertising. AppGoogBook are chasing a lot of those same areas.
2) A lot of service industries in the bay area are being propped up by the software industry. All those new restaurants popping up in SF--how much of their revenues comes from VCs and software engineers whose salaries are paid by VCs?
3) Real estate values and rents in the bay area will plummet of there is a readjustment in the technology sector.