I like this thinking!
"The big public infrastructure-as-a-service (IaaS) players may be on the brink of a crisis as cataclysmic as the 2008 banking crash"
Yes, but the whole economy is also on the brink of a crisis far more cataclysmic than the 2008 banking crash and the 2001 dot.com crash. Where is your credit now?
Let's invest in a couple of on-premise servers.
In today’s post Wolf Richter offers some solid insights on the dynamics of financial bubbles which merit further comment. The starting point is to recognize that once they gain a head of steam, financial bubbles tend to envelope virtually every nook and cranny of the economy, creating terrible distortions and destructive excesses as they rumble forward. In this instance, Wolf Richter explains how Silicon Valley has once again (like 1999-2000) been transformed into a rollicking capital “burn rate” machine that has spawned a whole economy based on striving for bigger losses, not better profits.
This latter development—- currently exemplified by 44 VC start-up companies in the IPO pipeline with a valuation of more than $1 billion each, despite no earnings and scarce revenues—-is indicative of late stage bubble dynamics. Say January 2000!
"He said nobody predicted the financial meltdown in the banking sector"