Housing is absolutely NUTS in the bay area (rent, insurance)

[Ruth4Truth]

Originally Posted by mrazyattic

And this doesn't leave people unemployed?

How do you mean?

[likealady]

Originally Posted by Netflix

The same thing needs to be applied to foreign investors asap. No purchases of property. Look at Vancouver, Canada. They opened they immigration to folks who have means. An investor designation if you will. The city is loaded with uber wealthy folks from all over asia. Downtown is loaded with ferrari's, bently's, lamborghini. An AMG is a cheap car there. Thats the future of the bay area unless folks do something to stop the inflow of dollars. Can't do much about the current tech workers though.

Agreed. I never really gave it much thought until I came here and heard stories of people buying these homes outright with cash. That screams foreign investors. Do we want our country's land bought up by foreigners while we pay them rent to live in our own cities? These are serious issues that cannot be ignored.

[dalparadise]

Originally Posted by NOLA101

Because tech is highly cyclical. The Bay Area had the nation's worst job losses 10 years ago, during the last downturn. Silicon Valley had higher unemployment than Metro Detroit.

Tech, for whatever reason, tends to boom and bust really hard.

Ten years ago, the tech bubble was based on speculation around the direct-to-consumer intangibles of the dot-com boom, which was primarily concerned with the media and communications aspects of the Internet. Its success was measured in old media terms like click-throughs (impressions) which were difficult to accurately measure or monetize.

Today, it's much more diversified and easier to evaluate. Hard goods like smart phones, electronic components, computer hardware, and even cars and other tangible products are a much bigger piece of the mix. Even technology-enabled exchanges of goods and services today, as in AirBnB deal in the exchange of a good or service for money, not just a media impression, as was the case in the past.

"Technology" is much harder to define now, and is ever-changing. It's not just a media play anymore. It is better integrated with other industries, like manufacturing, banking, media, marketing, and more. In essence, it has been mainstreamed into a part of virtually any facet of business you can imagine. It's no longer a novelty, it's the means by which any business grows... Anywhere. It has simply evolved from where it was in the late 90s.

It and SF may decline some soon, but a full bust of the sector, as in years past, will not happen now.

[CirclingLogan]

Originally Posted by dalparadise

Ten years ago, the tech bubble was based on speculation around the direct-to-consumer intangibles of the dot-com boom, which was primarily concerned with the media and communications aspects of the Internet. Its success was measured in old media terms like click-throughs (impressions) which were difficult to accurately measure or monetize.

Today, it's much more diversified and easier to evaluate. Hard goods like smart phones, electronic components, computer hardware, and even cars and other tangible products are a much bigger piece of the mix. Even technology-enabled exchanges of goods and services today, as in AirBnB deal in the exchange of a good or service for money, not just a media impression, as was the case in the past.

"Technology" is much harder to define now, and is ever-changing. It's not just a media play anymore. It is better integrated with other industries, like manufacturing, banking, media, marketing, and more. In essence, it has been mainstreamed into a part of virtually any facet of business you can imagine. It's no longer a novelty, it's the means by which any business grows... Anywhere. It has simply evolved from where it was in the late 90s.

It and SF may decline some soon, but a full bust of the sector, as in years past, will not happen now.

Spot on.

Talking about the "tech" sector in 2015 is somewhat akin to discussing the "industrial" sector in 1915.

Then, the entire economy became industrialized. Now, everything is evolving to tech.

[justinbro2002]

Originally Posted by Netflix

One component to addressing the housing problem, although its somewhat late, is for county laws to be passed preventing further investor (how ever you want to define that) purchases of single family homes. If you want to be a residential real estate investor of any meaningful size, you need to be limited to invest in apartment buildings. If you're a mom and pop and want to buy a house or two, then you're good to go. If you think its a good idea then get your referendum on.

The same thing needs to be applied to foreign investors asap. No purchases of property. Look at Vancouver, Canada. They opened they immigration to folks who have means. An investor designation if you will. The city is loaded with uber wealthy folks from all over asia. Downtown is loaded with ferrari's, bently's, lamborghini. An AMG is a cheap car there. Thats the future of the bay area unless folks do something to stop the inflow of dollars. Can't do much about the current tech workers though.

All you would do by banning foreign investor is cause a bust worse than the last one. How fair is it to people who bought before now and have a lot of equity to strip them of that equity because someone else missed the boat?

[dmode]

Originally Posted by dalparadise

Ten years ago, the tech bubble was based on speculation around the direct-to-consumer intangibles of the dot-com boom, which was primarily concerned with the media and communications aspects of the Internet. Its success was measured in old media terms like click-throughs (impressions) which were difficult to accurately measure or monetize.

Today, it's much more diversified and easier to evaluate. Hard goods like smart phones, electronic components, computer hardware, and even cars and other tangible products are a much bigger piece of the mix. Even technology-enabled exchanges of goods and services today, as in AirBnB deal in the exchange of a good or service for money, not just a media impression, as was the case in the past.

"Technology" is much harder to define now, and is ever-changing. It's not just a media play anymore. It is better integrated with other industries, like manufacturing, banking, media, marketing, and more. In essence, it has been mainstreamed into a part of virtually any facet of business you can imagine. It's no longer a novelty, it's the means by which any business grows... Anywhere. It has simply evolved from where it was in the late 90s.

It and SF may decline some soon, but a full bust of the sector, as in years past, will not happen now.

Nailed it. Everything is tech driven now, banking, cars, travel, hospitality, food. There is no more tech tech and thus no more bubble.

[calicoastal]

Originally Posted by dmode

Nailed it. Everything is tech driven now, banking, cars, travel, hospitality, food. There is no more tech tech and thus no more bubble.

That's a variation of "it's different this time." Only problem is that it isn't different. There are many tech companies that are ridiculously overvalued based on revenue and profits. That bubble will pop, just like last time.

[beb0p]

Originally Posted by calicoastal

That's a variation of "it's different this time." Only problem is that it isn't different. There are many tech companies that are ridiculously overvalued based on revenue and profits. That bubble will pop, just like last time.

Being overvalued is very different from being a house of cards. The last tech bubble, there were companies that existed purely to burn money. This time it's a lot different.

If the stock price of each and every tech companies go down 50%, guess what, the companies still exist and the employees still employed. The important thing is that companies are making money, unlike the last tech cycle.

Bottom line is that a "tech stocks bubble" is not the same as a "tech bubble." The former will mostly hurt investors who are live outside of the Bay Area.
.

[bmw335xi]

Originally Posted by justinbro2002

All you would do by banning foreign investor is cause a bust worse than the last one. How fair is it to people who bought before now and have a lot of equity to strip them of that equity because someone else missed the boat?

Well said, just because you made bad life decisions doesn't mean others should suffer the same consquences. It's like the kid in high school who messed around, didn't want to go to college and now is working barely above minimum wage conplaining about his classmates who are now doctors, lawyers, financial analysts, programmers etc.

[k374]

Originally Posted by calicoastal

That's a variation of "it's different this time." Only problem is that it isn't different. There are many tech companies that are ridiculously overvalued based on revenue and profits. That bubble will pop, just like last time.

+1

Uber valuation at $49 billion... seriously? this is a joke!