How come technology did not get a bailout in the last bear?

Discussion in 'Economics' started by Aaron Copland, Oct 14, 2008.

  1. Seems like the fair thing to do. Just bailout everyone. We can not pick and choose the winners, that’s not how a capitalist economy works.
  2. Because Webvan or Etoys going out of business doesn't have the same effect on the global financial system as LEH melting down.

    Not sure why you don't understand this. Weren't you supporting the NY Fed in letting LEH fail assuming that it's "not a big deal"?
  3. pitz


    It runs much deeper than that. Basically most R&D in the tech industry stopped after 2000. There is nothing left in the pipeline.

    Around the same time, the few IT or tech jobs remaining were 'technologist' roles, not engineering roles. Hundreds of thousands of EE's still unemployed today -- people who have made extremely large investments in their training, seeing no return on their investment, and in many instances, actually being told they're 'too qualified' to work at Wal-Mart.

    Its a disaster. All the paper money floated from the sky doesn't fix the problems there -- R&D takes time. Passing this "No Mortgage Broker Left Behind Act" accomplishes nothing other than destroying the US dollar.
  4. BSAM


    Not enough payments to Congressmen.
  5. pitz


    Yeah, no kidding, any dumbshit can write loans and collect spreads. It takes real talent to work in the tech industry and produce a usable implementation of a new gadget.

    Congressmen tend to help their own kind, dumbshits.. Not the nerds they bullied in school in their youth.
  6. ElCubano


    but can they take one product and cut it in to "TRANCHES" and make 10 times more??? :D
  7. pitz


    Techies can sell you 10 hard drives and charge for more than 10, if they're integrated into a nice package with a RAID controller.. :)

    And at least, in that case, the sum of the parts has more value than the individual parts alone. Bankers can't do that..
  8. most of those tech companies didnt make money. Bank did make money.
  9. tech companies tend to be very profitable and dont need bailouts
  10. pitz


    I'd disagree. Most of those tech companies were producing products, or services that resulted in lasting wealth.

    Whereas, with the banks, most of them destroyed value by overpaying employees, running innefficient operations, and relying upon business models that were fundamentally flawed.

    The technology bubble and its deflation was far less destructive, and during the tech boom, there was virtually full employment, and job quality was increasing. Not so with banking.
    #10     Oct 14, 2008