I mean, it isn’t history repeating itself exactly but it certainly has an echo.
I think openai is actually a great example for my point. They’re getting investment money from these companies, which is often spent at these companies, and part of the reason for investment is to influence direction.
The dotcom bubble also had major companies making investments. It’s that part of the bubble bursting is those large companies not withdrawing support, but stopping the continual increase in support. Microsoft, Apple and Cisco had massive losses during the bubble, despite being some of the biggest companies.
For bubbles in general, it’s worth remembering that a crash is a time of unprecedented change. Before 2008 the thought of Lehman bothers suddenly going bankrupt was implausible. Same for Washington mutual. Fannie Mae and Freddie Mac were originally publicly traded companies until the government just took them to stabilize the housing market. (Being a government founded company makes it a little weird, but they weren’t a part of the government)
So while I get what you’re saying, it’s a good idea to be wary of feeling that any company is … Too big to fail. :)
I mean, it isn’t history repeating itself exactly but it certainly has an echo.
I think openai is actually a great example for my point. They’re getting investment money from these companies, which is often spent at these companies, and part of the reason for investment is to influence direction.
The dotcom bubble also had major companies making investments. It’s that part of the bubble bursting is those large companies not withdrawing support, but stopping the continual increase in support. Microsoft, Apple and Cisco had massive losses during the bubble, despite being some of the biggest companies.
For bubbles in general, it’s worth remembering that a crash is a time of unprecedented change. Before 2008 the thought of Lehman bothers suddenly going bankrupt was implausible. Same for Washington mutual. Fannie Mae and Freddie Mac were originally publicly traded companies until the government just took them to stabilize the housing market. (Being a government founded company makes it a little weird, but they weren’t a part of the government)
So while I get what you’re saying, it’s a good idea to be wary of feeling that any company is … Too big to fail. :)