• DandomRude@lemmy.world
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      1 day ago

      I would say that Tesla is a good example on a smaller scale: according to the stock market, the company is still worth nearly twice as much as the five largest car manufacturers in the world combined – which has nothing to do with reality.

      • Bronzebeard@lemmy.zip
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        22 hours ago

        Because they’re a battery manufacturer with a car division. They also sell batteries and solar tiles for buildings

        • glimse@lemmy.world
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          20 hours ago

          It doesn’t matter how well their other divisions are doing, their overall financial situation is abysmal.

          Their valuation is based on speculation and misplaced hype. They haven’t been an innovative company in a very long time

    • MagicShel@lemmy.zip
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      22 hours ago

      Yeah I want to say the writing was on the wall for the 2008 crisis as early as 2001, but the momentum continued to carry the market upward for years. In 2005, Fed Chairman Alan Greenspan called it “froth.” The bubble peaked in 2006, and it still took all of 2007 for it to really hit, meanwhile there were little pockets of continued growth or at least the drop didn’t hit everywhere all at once. I remember when California was reeling but it seemed like my Midwestern area would be spared the brunt of it — we weren’t.

      These things can take a long time to unfold, even when there is a “crash.” And maybe it just slows without crashing.

      • Brave Little Hitachi Wand@lemmy.world
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        24 hours ago

        It’s froth all the way up and all the way down.

        There’s also the fact that assets merely failing to appreciate, or wages failing to fall, or trade deficits cough tariffs cough, could all be viewed by these talking heads as the effects of, or the putative causes of, a crash.