Let’s say, for argument’s sake, that the prices for startups, venture funds, luxury San Fran / NYC / Hamptons real estate, atrocious contemporary art, tech momentum stocks, the Nasdaq, the Russell 2000 and “cloud plays” have peaked for the cycle. Let’s also say – again for argument’s sake because who really knows – that a lot of money gets lost as a result.
So what.
What is the societal impact of the art market collapsing in on itself (as it always does once stocks stop rising)?
What happens to the actual economy if Twitter can’t get back over the IPO print?
What’s the effect on the nation if the Sand Hill Road Maserati dealership wait-list drops back down to 6 months from 10?
I’m going to go ahead and say none. Zero impact.
How do I know?
Because if the inflation of a bubble hasn’t benefited anyone on the way up, how widely can its deflation be felt?
No one else is playing. No one’s in except the 1% and the benefits have largely accrued to the .1% or the .01% anyway.
Unlike the dot com bubble and the housing / credit bubble, this time around there was such exclusivity on the way up that it almost doesn’t matter. Almost nobody got hired as a result of the Rich Man’s Bubble, almost no one got a raise either. In 2000, everyone was daytrading. Not today. In 2006, everyone was financing everything in sight and acquiring homes. Not today.
All we got this time around was a lot of cheap web storage somewhere in the ether, a half-dozen useful (free) apps and a handful of nephews and son-in-laws who were momentarily billionaires on paper. Big f***ing deal.
That the enormous prosperity of the new bubble wasn’t spilling over to 99% of the nation was largely seen as a curse. Maybe now it’ll be seen as a blessing in disguise.
To those who have been playing, I’m sure you’ve done well enough by now anyway. It’s okay.
Sorry if you missed your IPO window. Don’t worry, we’ll blow up another one of these bad boys soon enough.
[…]Wonderful story, reckoned we could combine a few unrelated data, nevertheless seriously really worth taking a look, whoa did one understand about Mid East has got a lot more problerms too […]
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
Under The Bed Restraints
[…]here are some links to sites that we link to since we feel they may be worth visiting[…]
Best Sex Lubricant
[…]Here is a good Weblog You may Locate Interesting that we Encourage You[…]
how to
[…]just beneath, are numerous totally not related web-sites to ours, having said that, they’re certainly worth going over[…]
adam and eve sex toy shop
[…]Every after in a though we choose blogs that we study. Listed beneath would be the most up-to-date web-sites that we opt for […]
Bond back cleaning Melbourne
[…]Sites of interest we have a link to[…]
Sripatum
[…]usually posts some incredibly exciting stuff like this. If you are new to this site[…]
longer sex
[…]Wonderful story, reckoned we could combine a few unrelated data, nevertheless seriously really worth taking a look, whoa did one understand about Mid East has got a lot more problerms too […]
bondage toys
[…]check beneath, are some absolutely unrelated web sites to ours, nonetheless, they’re most trustworthy sources that we use[…]
forklift repair miami
[…]the time to study or check out the subject material or websites we have linked to beneath the[…]
how to spice things up in the bedroom
[…]please take a look at the websites we stick to, including this one, because it represents our picks in the web[…]
raiola panda
[…]very few sites that transpire to be detailed below, from our point of view are undoubtedly properly really worth checking out[…]
sexy bedroom costume
[…]usually posts some quite fascinating stuff like this. If you are new to this site[…]
pc games for pc download
[…]one of our guests lately advised the following website[…]
http://mer99furniture.com
[…]although websites we backlink to beneath are considerably not connected to ours, we feel they are truly really worth a go by, so possess a look[…]
apps for pc download
[…]The facts talked about inside the article are a number of the most beneficial readily available […]