The Big Lie that keeps the Uber bezzle alive(pluralistic.net)

The Big Lie that keeps the Uber bezzle alive

https://pluralistic.net/2022/02/11/bezzlers-gonna-bezzle/#gryft

1 comments

I worry that the combination of the insane lending power of private equity firms and the increasingly narrative-driven tendencies of public markets will lead companies like Uber to "break orbit"--that is, to become so unmoored from fundamentals ("revenue model" is a quaint fundamental indicator now, I guess) that they will only fail when their sponsoring private/public markets do, rather than when investors get unhappy with a company's performance.

If that occurs, it would create a self-perpetuating cycle of ... what's economist for "hype"? And make it so that there's no way to unwind toxic investments in a way that's gradual or gentle for the economy. Everything would be tied up in the same bubble, and would burst at the same time.