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The Big Lie that keeps the Uber bezzle alive

10 pointsby xvelloover 3 years ago

1 comment

zbentleyover 3 years ago
I worry that the combination of the insane lending power of private equity firms and the increasingly narrative-driven tendencies of public markets will lead companies like Uber to &quot;break orbit&quot;--that is, to become so unmoored from fundamentals (&quot;revenue model&quot; is a quaint fundamental indicator now, I guess) that they will only fail when their sponsoring private&#x2F;public markets do, rather than when investors get unhappy with a company&#x27;s performance.<p>If that occurs, it would create a self-perpetuating cycle of ... what&#x27;s economist for &quot;hype&quot;? And make it so that there&#x27;s no way to unwind toxic investments in a way that&#x27;s gradual or gentle for the economy. Everything would be tied up in the same bubble, and would burst at the same time.