Bubble

The Endless Bubble Debate: Kedrosky Vs. Wadhwa

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With valuations for tech companies going through the roof from Facebook on down to Dropbox, the endless bubble debate sees no end. Paul Kedrosky and Vivek Wadhwa recently got into it on Bloomberg West TV.

Professor Wadhwa thinks it will all end badly with Grandma losing her piggy bank. Kedrosky points out that bubbles usually occur at the tail end of a market run-up, and he predicts we have at least a good 4 to 5 years left for this one. He compares Wadhwa to a central banker trying to take the punch away at a party before the party even begins. Wadhwa sticks to his guns and that “when this little bubble around social media bursts” it will take down all tech valuations.

It’s a spirited debate. Watch the video and tell us who you think is right in comments.