[quote=FlyerInHi]But that’s not too much money on the sidelines. It’s not enough demand for products and services. Business are not borrowing and investing because they don’t forecast demand.
And remember from first year economics class, ability to pay is a component of demand. No ability to pay (no cash) = no demand.[/quote]
To be fair, no demand of money != no demand for product/service.
Remember, Whatsapp took only $8 million Series A funding to get to 200 million active users and 50 staff members.
If the world is now run by software, the demand of capital is in decline, the demand for talent is on the rise (see salaries in Bay Area). This is really a Silicon Valley v.s. NYC story.
