The Corner

Economy & Business

Why We Can’t Be Too Far from a Silicon Valley Bust

Henry Blodget of Business Insider, who was on Wall Street for the last big tech bust, has an interesting semi-answer to a question a lot of people have been asking: When does the tech business’s insane tear end? 

It’s a when, not if, question, he notes, because that’s just the nature of the tech business. And it can’t be that far away, he argues, because Silicon Valley and tech investors are no longer “thinking critically.”

The way he illustrates the illustrates this point: a recent exchange he with a couple Valley “bigwigs” who were explaining to him why tech firms can and should get into the car business, will shake it up, and make billions. It might sound like a silly data point (well, presumably the confidence at hand is sillier), but that kind of arrogance really should suggest we’re getting to the end of a bubble. Some of our natural assumptions about business and financial markets can be upended by exceptional events — but not all of them, again and again.

It’s reminiscent of the likely apocryphal story about how Joe Kennedy said he realized he had to get out of the stock market when his shoe-shine boy started offering investment advice. (Joe did get out; we might not have the Kennedy dynasty without his investment timing.) What’s happened at Apple and a few other companies is likely a once-in-a-generation business miracle. The generation will surely come to an end.

Patrick BrennanPatrick Brennan is a writer and policy analyst based in Washington, D.C. He was Director of Digital Content for Marco Rubio's presidential campaign, writing op-eds, policy content, and leading the ...

Most Popular

Economy & Business

Shopping Superstitions

It’s the boss-bossiest time of the year, when Americans getting ready to open up their wallets to buy Christmas presents are lectured by illiterate halfwits about where and how to spend their money. The usual demands: Buy local, or buy from small businesses. This is pure nonsense, and you should feel free to ... Read More
Economy & Business

Shopping Superstitions

It’s the boss-bossiest time of the year, when Americans getting ready to open up their wallets to buy Christmas presents are lectured by illiterate halfwits about where and how to spend their money. The usual demands: Buy local, or buy from small businesses. This is pure nonsense, and you should feel free to ... Read More
The Capital Note

Palantir’s Eye-Popping Rally

Welcome to the Capital Note, a newsletter about business, finance and economics. On the menu today: Palantir shares skyrocket, a giant of labor economics passes away, Slack in acquisition talks with Salesforce, and Yellen’s plans for Treasury-Fed cooperation. The Palantir Bump: Politics or Product? Palantir, ... Read More
The Capital Note

Palantir’s Eye-Popping Rally

Welcome to the Capital Note, a newsletter about business, finance and economics. On the menu today: Palantir shares skyrocket, a giant of labor economics passes away, Slack in acquisition talks with Salesforce, and Yellen’s plans for Treasury-Fed cooperation. The Palantir Bump: Politics or Product? Palantir, ... Read More
History

The 1620 Project

On November 11, 1620, the Mayflower arrived on the eastern coast of North America. She had weathered the slings and arrows of maritime misfortune for almost ten weeks at that point, but the passengers thought the discomfort of crossing a small price to pay for passage to the Promised Land. After all, these were ... Read More
History

The 1620 Project

On November 11, 1620, the Mayflower arrived on the eastern coast of North America. She had weathered the slings and arrows of maritime misfortune for almost ten weeks at that point, but the passengers thought the discomfort of crossing a small price to pay for passage to the Promised Land. After all, these were ... Read More
Media

Wajahat Ali, Ctd.

I gather he didn’t like my comment on his New York Times op-ed on the folly of reaching out to Trump supporters. He snipes, “I await The National Review’s piece on reaching out to Biden voters and reading about their ‘elegy’ and understanding their ‘economic anxiety.’” After the 2016 election, ... Read More
Media

Wajahat Ali, Ctd.

I gather he didn’t like my comment on his New York Times op-ed on the folly of reaching out to Trump supporters. He snipes, “I await The National Review’s piece on reaching out to Biden voters and reading about their ‘elegy’ and understanding their ‘economic anxiety.’” After the 2016 election, ... Read More
World

A Moveable Feast?

Last week a unique but apposite tribute was paid in Budapest to the late Sir Roger Scruton, the distinguished Tory philosopher who died earlier this year: A café was opened in his name. It goes under the designer label “Scruton—The Place to be” and is situated three blocks from the Hungarian Parliament at ... Read More
World

A Moveable Feast?

Last week a unique but apposite tribute was paid in Budapest to the late Sir Roger Scruton, the distinguished Tory philosopher who died earlier this year: A café was opened in his name. It goes under the designer label “Scruton—The Place to be” and is situated three blocks from the Hungarian Parliament at ... Read More