So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.
I don't see why job losses are a bad thing. The last generation of machines was built so well that people don't need new ones. Good! This should be a great thing. Valuing growth over sustainability makes these backwards ass goals of hiring more, building more and growing. The way this is spun is pretty horrible. Amazon and Wal-mart losing is a good thing for the environment and society as a whole. You yell, "But peop…
If a lot of companies suddenly go bust that are today supposedly getting in the way of innovation, it might be good for long term innovation, but in the short term, say 10-15 years it can really be hell. Not to mention that in this 10-15 year period while the economy is hemorrhaging it makes the entire economic ecosystem very vulnerable, and significantly reduces its capacity to deal with external attacks.
That is while US companies may start failing, who's to say that a foreign company won't take its place. Then you have to start taking isolationistic measures, which is a whole other mess.
The ideal scenario would be to see these companies slowly, over a period of decades fade out, and be replaced by others, which I honestly don't see happening as of yet in SV, but things like this generally do come out of the left field.
So if we see these companies shrink rapidly, with no one else to take the mantle, I honestly think it would be a dangerous situation as it can be a catalyst for something bigger.