Silicon Valley Bubble?

This article on the possibility of another high tech bubble is generally interesting. But I especially focused on the problem of groupthink. Here’s a sample:

It turns out that insider-ness provides little protection against delusional thinking. “A fundamental observation about human society is that people who communicate with one another regularly think similarly,” the Nobel-Prize winning economist Robert Shiller writes in Irrational Exuberance, his book on the late ‘90s. This is as true of venture capitalists and tech executives as it is of lowly clock-punchers. Indeed, Shiller cites several experiments showing that people will often accept an observation that is self-evidently bonkers merely because seven or eight peersabout the size of a typical Silicon-Valley board meetinginsist it’s right. “People simply thought all the other people could not be wrong,” Shiller explains.

There are some important issues to think about here.

 

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