Is this the beginning of recession?

Netflix netube
Sep 10 554 Comments

Did wework and uber mark the start of a recession? Or was it just small bubble bursting? Some say this one will start from tech sector.

How are you preparing for it?

comments

Want to comment? LOG IN or SIGN UP
TOP 554 Comments
  • eBay / Eng
    #abc_123

    eBay Eng

    PRE
    Microsoft
    #abc_123more
    Netflix and chill.
    Sep 10 17
    • New / Product
      B0ngzilla

      New Product

      PRE
      Pegasystems, Robert Half
      BIO
      I’m Canadian, but then I got better.
      B0ngzillamore
      Sex prime
      7d
    • Intuit fhgjbv
      Amazon prime and some nasty time 🤪
      7d
    • Morgan Stanley
      summer_gen

      Morgan Stanley

      PRE
      Microsoft
      summer_genmore
      Liberals and Trump

      (yes, it had to be done)
      7d
    • Microsoft / R&D
      kintaro

      Microsoft R&D

      BIO
      Synbio = future, nothing less.
      kintaromore
      Trump and dump
      7d
    • PayPal / Eng SantanaRow
      Prime and bananas 🍌 🍌
      5d
  • Salesforce abzt123
    Invested in gold as a hedge for all of the other investments (401K, wealthfront, brokerage accounts) and cash holdings
    Sep 10 26
    • Amazon Dr. Jones
      @abzt123 contango and backwardation are effects on the futures market, and they carry over to ETFs because ETFs hold futures to track commodity prices. You are correct in saying if the gold futures market was in backwardation, over long periods (months to years) if spot gold went down, the GLD ETF price would be less affected. As an example of contango’s effects, years ago I made a sizable investment in GLD, the spot gold price went up 20% year over year, but GLD only went up 5%. I assume your comparisons did not compare the magnitude of the moves, only the direction.
      6d
    • Amazon Dr. Jones
      Holding physical gold removes the contango / backwardation effects, but it has other problems. You might be sold fake gold or gold with faking stamping, and it’s hard to sell physical gold quickly at a fair price when you want to get out. I’ve given up trying to use gold as a hedge because I can’t find the right instrument to trade it.
      6d
    • Salesforce abzt123
      @Dr Jones Wow that’s a tragic rate of return. I looked into the magnitude of change but my sample size was too small. Have you looked into other gold ETF’s? There might be ones backed by physical assets or ones that buy front-month futures or ones with that just have better performance
      6d
    • Societe Generale realhardy
      Buying gold is not a hedge to any equity/bond portfolio
      6d
    • Apple / Eng MappleSuck
      It was a hedge when Gold was 1200, at 1500+ it’s no longer a hedge
      5d
  • Oracle
    not_larry

    Oracle

    PRE
    Amazon
    not_larrymore
    I short tech stocks using the money I made from my tech job.
    Sep 10 8
    • Intuit 555734
      naked short?
      7d
    • Unity qaNM33
      Of course you need money to start a leverage position, and you need to pay interest
      7d
    • Chegg vhYe62
      Good luck shorting without reserves! Don't get surprised when you get a call in a bad moment.
      Also not sure what broker will let you do that without 100% reserves (fed requires + 50%). Using margin also will cost you %
      7d
    • USAA / Project
      hpQp14

      USAA Project

      PRE
      USAA
      hpQp14more
      SPXU is all
      7d
    • Oracle cby1990
      Short futures is a good options since it's highly leveraged (thus doesn't require you to free up capital in other hedged assets), no short interests rates. I personally short s&p 500 futures while longing dividend stocks
      7d
  • Airbnb AvfB77
    It will mark the start of people treating their business like one that should be profitable. WeWork and Uber should not be the norm.
    Sep 10 0
  • Nike
    89ghyr

    Nike

    PRE
    Google
    89ghyrmore
    A huge crash is coming. It will be worse than the great depression. I am amazed by how many people don't see it coming.
    7d 30
    • EPAM Systems ExplodingBanana
      I didn't get to sleep on top of a pile of cash by buying overpriced iPhones
      7d
    • Concur / Eng Dr. Monkey
      As a reminder, if you want to hedge against a market crash and/or inflation, the best time to buy bitcoin was years ago, and the second best time is right now.
      7d
    • Indeed notchyams
      How does buying Bitcoin save you from the next market crash?
      6d
    • Amazon blindhippo
      Bitcoin doesn’t hedge against anything. It’s value is literally measured in American dollars. No one wants bitcoins directly, they want dollars. If the dollar crashes, bitcoin will vanish.

      Physical assets (actual gold, not futures) *might* be safer. But honestly, if the American dollar sinks, every economy is truly fucked.
      6d
    • EPAM Systems ExplodingBanana
      ... except economy that's based on gold and yen. China and Russia.
      6d
  • SAP dwEC83
    just because investors dont like their balance sheets triggered a recession?
    Sep 10 2
    • Netflix netube
      OP
      It may be a proxy - money is tight. I think dotcom also started with startups going under.
      7d
    • SAP dwEC83
      they hyped it as much as they could, the stupid and greedy investors eat the bait, that is all there is really.

      they hired a lot because they can raise cash by snapping their fingers. now they have to operate like everyone else.

      dont think this is even a big layoff relatively to the company size. most companies have layoffs once in a while. now uber is just becoming like most.
      7d
  • Amazon / Eng
    endofsummr

    Amazon Eng

    PRE
    Amazon
    endofsummrmore
    Close out mortgage ASAP and live debt free life... that way, even if I lose my job, I can live a frugal life until I find a job 😉
    7d 11
    • Amazon 2^blah
      Dave ramsey leaking into blind. I'm with you on this man...
      5d
    • Netflix razorlab
      I rather comfortably lease my McLaren than to own some random Audi/bmw/Benz.
      5d
    • Amazon SDE3Hire
      High fixed monthly spend locks you into rat race of income. You need steady passive income (like rentals) or low debt (fixed payments) to be able to take more risks.

      Relying on your stock portfolio with needed sell-off can backfire if market tanks.
      5d
    • Symantec blahblah19
      Retail numbers were better than expected. Job report was solid. China backing off a little bit. I think recession is coming our way, but not in the next 6-12 months. And this recession is not going to be the same as the previous one as everything tanked. That was mainly due to faulty housing market.
      4d
    • New Jones29
      I think Dave Ramsey gives that advice because much of his audience would go on a drunken spending spree if the cash was lying around. Locking it up in the house prevents that.
      3d
  • New / Eng iDhF64
    The delusion in these comments is striking. Do you really think this insane party is going to go on forever? VC money doesn’t come out of nowhere and that money tightening is certainly a good macro indicator for investor sentiment which is a key indicator for recessions.
    7d 8
    • New / Eng iDhF64
      India and SEA is what I’m looking at.
      7d
    • New / Eng
      TechLeed

      New Eng

      PRE
      Amazon
      TechLeedmore
      The jobs over there are truly 👌
      7d
    • New / Eng iDhF64
      It’s not like you have to work to survive there, I’ve calculated that I can live reasonably comfortably for years with the savings I have as it’s incredibly cheap to live there. I’ll be back when the economy picks up again.
      7d
    • Netflix razorlab
      I actually think the money does come out of no where... it just ends up in the pocket of the vcs. I think just about every major tech company is taking out loans right now, needed or not. I mean why not? Free money.
      7d
    • Dell LUHV04
      Fluf companies that were taking losses will go.

      However companies like google etc that have money in the bank need not worry
      6d
  • Facebook readysetno
    The US economy is much bigger than tech, and even all these pent up unprofitable startups collapsing wouldn’t cause a recession, just a dip.
    Sep 10 3
    • Netflix netube
      OP
      This kind of makes sense. Money will be flowing from some tech companies to others or out of equity market.
      7d
    • Uber yammmm
      Except the US economy is massively supported by tech. When tech crashes, the markets will fall a lot. If fall is limited to Uber and weworks, then not much will change. But if investors lose faith in the tech sector (as some articles are predicting), the market is fucked
      7d
    • SAP dwEC83
      you mean so called investors lost faith in their own self created tech hype. as far as companies goes, they still build the same products as last year.

      investors just realized their utopic projection isnt materialing.
      7d
  • Microsoft codecov
    How is WeWork a tech company?
    7d 15
    • SAP dwEC83
      does it really matter what companies classify themselves as? they do that to fetch high P/E but investors dont really care
      7d
    • Wayfair / Eng tAcq10
      Yep, unless that was an all cash $400k offer, that guy's an idiot because WeWork paper money is worthless
      7d
    • Adobe jjjx12
      Good point. I'm high so I forgot to wonder how much was worthless stock.

      People had 700k+ paper tc for like director or something
      7d
    • Orion / Cust. Srv. 🌹♟🗡
      The answer is wework isn’t a tech company
      7d
    • Orion / Cust. Srv. 🌹♟🗡
      It’s an office rental arbitrage unit
      7d
  • Goldman Sachs / Eng
    GxEiu

    Goldman Sachs Eng

    PRE
    eBay
    GxEiumore
    Can someone give me the TLDR of what’s going on with wework?
    7d 5
    • Google LyLs67
      Financial engineering
      7d
    • Amazon / Eng OlAl28
      😂
      7d
    • Microsoft codecov
      Watch the latest Recode by Scott Galloway
      7d
    • Autodesk leetyeet
      Theranos
      7d
    • Credit Karma
      BrunchBtch

      Credit Karma

      PRE
      Google
      BrunchBtchmore
      WeWork has perfected commercial real estate and doesn’t have any problems.
      7d
  • Microsoft / Product Izxv26
    WeWork and Uber are perfect examples of overvalued tech and unsustainable business models. The market and our world needs real solutions to real problems. SV needs to get out of the insular bubble we have built and rediscover the rest of the world. We have the intelligence and the tools to deliver high quality solutions to real problems. That is where you will find sustainable business models.
    7d 15
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      You clearly don't know 2 shits about taxi industry if you think they have less overhead.
      5d
    • SAP dwEC83
      certainly not 5bil over 3 months
      5d
    • Amazon SDE3Hire
      I wouldn't buy Uber or Lyft. When driverless cars come the price will drop significantly and be profitable.

      Im not convinced either of those companies are destined to win.
      5d
    • Lyft wwwa
      SAP is ignorant. On par with lower tier company.
      4d
    • SAP dwEC83
      the tier of companies that makes a profit. we will see how long before lyft file for chapter 11.
      3d
  • Dropbox iDlY21
    WeWork is literally a Ponzi scheme masquerading as a tech company. Just a Silicon Valley wannabe run by a NY sociopath who thinks the essence of tech innovation is simply talking about it
    7d 12
    • MassMutual / Eng
      NkOS62

      MassMutual Eng

      BIO
      Lead Software Engineer
      NkOS62more
      Are you?
      7d
    • JCPenney Pano
      I thought working at Cisco outside TAC was enough to classify as a sociopath.
      7d
    • Microsoft CaAw02
      Who isn’t Dexter? Act accordingly
      7d
    • Cisco
      aynrand1

      Cisco

      BIO
      Tech Bro
      aynrand1more
      Whatever lol
      7d
    • MassMutual / Eng
      NkOS62

      MassMutual Eng

      BIO
      Lead Software Engineer
      NkOS62more
      You say sociopath like it's a bad thing.
      7d
  • Flagged by the community.

  • Facebook irqL16
    Bitcoin
    Sep 10 5
    • eBay UvYf82
      You mean Libra?
      Sep 10
    • Facebook irqL16
      Oh yeah

      Libra.
      7d
    • Cisco NnMk28
      😂
      7d
    • Cisco dhebenv
      Libra. ?? Are you fuckin kidding me. It most likely won’t see the light of day !!! When it does I will change my blind id
      7d
    • Facebook / Data Jeef Besus
      Outrageous wager Mr. dhebenv
      5d
  • Microsoft / Sales
    FUPM

    Microsoft Sales

    PRE
    Connection, Allstate Financial Services, LLC
    FUPMmore
    If uber fails? I'll call a Lyft or a cab, if we work fails, I'll go to the office or WFH... not indispensible orgs.
    7d 8
    • Amazon / Biz Dev vest
      Not that easy to call it a "convenience" ... there's an unintentional consequences. If Uber fails, you'll tell all the ppl who are counting on your accuracy of when you'll arrive to just wait, cause you have no idea.

      You'll have no way of knowing if your taxi gives a sh*t if you get anywhere on time...

      If we work fails, you'll have to wait until your office resets designated seating, so you'll have a chair to sit in when you get there.

      If it's a habit, then some of us can go back to riding horses & see how far we get in life, when others are using their time more wisely.
      6d
    • Reliable Software / Eng YonkoKaido
      @fupm bold of you to assume that you will have a job in the first place during recession 😂
      6d
    • Microsoft / Sales
      FUPM

      Microsoft Sales

      PRE
      Connection, Allstate Financial Services, LLC
      FUPMmore
      I'm in sales, I will always have a job, may not be a dream job... but itll be a job
      6d
    • Google Mr. Glass
      Everything of critical utility today was once a convenience or a luxury. Check your assumptions @dxza.
      6d
    • Microsoft KKWh68
      If google fails we'll just use lycos or yahoo. No biggie. Google is not indispensible too
      6d
  • Google FWvi43
    We're struggling at Google to add new features to Pixel devices in order to sell more units. Friends at Apple say the same thing.
    Even with 5G we don't have much to add to the current ecosystem.
    Content is the king, so YouTube and Instagram might survive for a while till the influencers run out of content.
    If u've watched Apple's latest event, u know what I'm taking abt.
    7d 7
    • Netflix razorlab
      Content is hard af to get right. You never know what will stick. Highly risky for people with no experience to create what Disney was able accomplish. The cost... oh the cost...$$$.
      7d
    • Capital One !Fuck You!
      Or just stop being so damn PC and woke. Leave the politics out of content and write a good story. Netflix has a lot of good original content. Some stuff is rather enjoyable but Netflix is shooting themselves in both feet with woke content; I.e Love, Sex, Robots. I’m not going to say the silent majority didn’t enjoy some of it. Rather, the mass of ignored and silenced majority speaks against it and doesn’t appreciate it. Whether it be Disney frakking up Marvel, Star Wars, etc. stop pandering to a minority twitter outrage culture mob that dominates a a particular social media subset. Stop virtue signaling. Take a lesson from Dave Chapspelle. Rotten Tomatoes and other mainstream sources gave his latest release a zero to thirty percent rating. Meanwhile, the public (not trolling and tired of woken, triggered, social media PC culture) give it upper 90 percentile ratings. Give the people what they want, it’s not hard to figure out. After all, the masses elected Trump because they were tired of the system and where it was going. People put him in power as an answer to that, yet corporations aren’t listening to what the people want. Corporations act like governments instead and dictate what content people will like and subscribe to. People feel like they are being forced to accept positions they don’t agree with. Comedy isn’t comedy anymore, long gone are the days of the classics like George Carlin. Free speech is dictated by tech giants and that’s where the points of contention start. Apologies for the long rant, just trying to offer some differing perspective.
      7d
    • New wint
      Mobile devices have plateaud to a large extent. The new iPhone releases just aren't that exciting. If it makes you feel any better I'm getting a Pixel 4, though.
      7d
    • Netflix razorlab
      Got it, so more reality dating shows.
      7d
    • Capital One !Fuck You!
      LOL! If your metrics show single women 18-50 as your primary subscription demographic then have at it. They love watching a good train wreck.
      7d
  • Samsung vtPX83
    It's crashing. Bay Area real estate is falling fast.
    7d 15
    • Groupon / Eng sleepy
      @samsung looks like an exception
      6d
    • Pandora / Eng joystick
      Real estate demand in the bay is driven by foreign _real estate_ investments, not startup investments. To crash, the market will need a global recession or regulations that restrict foreign foreign capital that goes into real estate.
      6d
    • SAP dwEC83
      may be he got a 8mil dollars home
      6d
    • Instacart NotElliot
      East bay is falling HARD
      6d
    • Facebook denpen
      I tried to catch one yest, rofl. This is all fake news, I see drops from 12-10% in east bay.
      6d
  • New VJ5
    What lmao? Since when does Uber and WeWork indicate the health of the global market.
    7d 0
  • Meetup svk837
    Why do think uber and wework have any sway over the world economy?

    They could both be wiped out tomorrow and the economy wouldn’t blink.
    7d 0