Tuesday, October 08, 2013
Silicon Valley largely ignores ruckus in Washington -- for now
Silicon Valley has been rather quiet and “rather smooth” in its reaction to both the shutdown crisis and talk of financial apocalypse if Congress and the President let the country default by failing to raise the debt ceiling. New York Magazine has this story by Kevin Roose here with a thumbnail of Mark Zuckerberg smiling as if to ask Diane Sawyer, “Is that a question?”
The Washington Post Wonkblog has a piece by Lydia DePillis, “Why Silicon Vallye has been silent on the shutdown”, here. The article itself does mention the debt ceiling, which is much more serious. But the companies generally say they are financed by venture capital, and not dependent on loans the way consumers are. Start-up’s a re continuing with little evidence of concern.
Still, companies should be concerned if the wheels of the economy fall off, because they depend on consumers. And they do depend on an economy that functions. And the do depend on equity, which is depends on the stock and bond markets.