Maybe, but how much overvaluation is there? $100 billion? $500 billion?
There needs to be trillions of dollars of overvaluation and a huge amount of leverage to constitute a financial crisis. I'm open to being wrong, but I don't see that here. Valuations may cut back a bit, but as you say, it's not like these companies are worth nothing, like Bear Stearns and Lehman and most other investment banks in 2008.
If there's a market correction in startups, I don't see it necessarily leading to a systemic financial crisis. More like a mild recession.
Ah, I don't think there will be a financial crisis like 2008. I do think there will be a retrenchment involving securities and bonds that will cause home prices to move downward or possibly just drift sideways for a long time.
There needs to be trillions of dollars of overvaluation and a huge amount of leverage to constitute a financial crisis. I'm open to being wrong, but I don't see that here. Valuations may cut back a bit, but as you say, it's not like these companies are worth nothing, like Bear Stearns and Lehman and most other investment banks in 2008.
If there's a market correction in startups, I don't see it necessarily leading to a systemic financial crisis. More like a mild recession.