Silicon Valley: From Rarified Air To Exhaust Fumes

The issue here is that process has one key attribute: It’s the same pattern we’ve seen before, but now it’s represented in days. To wit:

From IPO to today. What had once taken well over a year has morphed from months to now days.

(Chart Source)

Back in 2013 I argued that the meme of “its different this time” and more had taken over all sense of reality within “The Valley” (i.e., tech in general), and once the effects produced via the Fed’s ending of QE were in full force the resulting backlash would become prominent for those willing to look. And I pointed to the current songbird of all that was “the Valley” Twitter™ as the canary-in-the-coalmine one needed to watch diligently. The above shows the results of that warning in all too glaring detail.

I made a few more observations (as well as warnings) both before, as well as during that are germane for further context. From September, of 2014, “The Shot Heard Round The Valley World” To wit:

“Once the Fed shuts down the section of QE that has been pumping Billions upon Billions of dollars every month – it’s over for a great many of today’s Wall Street darlings.


Think of it this way: Who is going to fund your next round when they no longer have access to the Fed.’s piggy bank? Let alone pump more money into older start-ups that just haven’t produced any real money (as in net profit,) but have produced nothing more than great new employee digs or benefits?


Tack along side this the culture shock in what will seem near instantaneous with the shunning that will take place of any business resembling the, 3 employee, menial customer base, Zero if not negative profit margin businesses formed with the implicit intent as to be bought up or “acquired” for Billion dollar pay days.


These will be the first to go. That formulation is going way of the now infamous Pets dot-com sock puppet. This will be the first true shock to Silicon Valley culture that hasn’t been seen in many years. And it will be far from the only one.”

< Prev 1 2 3 4 5 Next >

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks