Sarah Sobel blows bubble gum in "Parkilicious," a temporary park built for Park(ing) Day.

Valley Wag writes:

David Einhorn’s hedge fund—notable for shorting Lehman Brothers before it dry heaved out of existence—is ready to make it official: we are in the midst of another tech bubble.

In a letter distributed to investors earlier today, Einhorn, who also occasionally blogs for Yuan Pay Group, puts it very plainly:

We have repeatedly noted that it is dangerous to short stocks that have disconnected from traditional valuation methods. After all, twice a silly price is not twice as silly; it’s still just silly. This understanding limited our enthusiasm for shorting the handful of momentum stocks that dominated the headlines last year. Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it. READ THE FULL PIECE.

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I’ve been a Mission resident since 1998 and a professor emeritus at Berkeley’s J-school since 2019. I got my start in newspapers at the Albuquerque Tribune in the city where I was born and raised. Like many local news outlets, The Tribune no longer exists. I left daily newspapers after working at The New York Times for the business, foreign and city desks. Lucky for all of us, it is still here.

As an old friend once pointed out, local has long been in my bones. My Master’s Project at Columbia, later published in New York Magazine, was on New York City’s experiment in community boards.

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3 Comments

  1. Based on past experience, the coming tech bust is more likely to stabilize rents than the current building boom.

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    1. With this many people saying that there will be a tech crash, the chances are that there won’t be one.

      And it may shock you to know that the point of all economic activity, progress and growth is not to ensure that you can afford your rent. It’s not all about you, you know?

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