Earlier quoted context omitted.
I agree with you it’s in a lot of way similar to the dotcom bubble but the issue seems to me simpler than you make it seems. Propped by an easy access to cheap investment fonds, companies massively over hired developers to work on projets which have actually no value. The massive demand leads to under qualified people being hired. The current layoff is a return to a sustainable situation. And even then if you look at…
In control systems, a common tradeoff is between a fast response that overshoots or a slow response that does not overshoot. We've seen that pace of innovation matters and if your goal is to maximize the pace of innovation, you want that fast response even if it means overshooting somewhat whenever there's a step change.
But, if that is what you mean, i.e. historically low interest rates accelerate the pace of innovation, we would witness innovation gains in countries with negative or zero interest rates. But we haven't seen any shift.
There's a difference between malinvestment and investing in projects that don't go anywhere.
This is the difference between burning cash in a bonfire, vs using $1 dollar to make $0.XX cents.
I'd argue the system was rife with the former, not the latter