On Mon, 29 May 2000, Mike Cheponis wrote:
> It would appear as if more people want to live in Silicon Valley than Munich.
>
> It's called "supply and demand".
>
> The average house in Silicon Valley costs $577,280 (Source: SJ Mercury News,
> 29 May 2000, page 7B). ( That's 1.216.791 DM at today's exchange rates, or
> 622.134,66 Euros. )
>
> Commercial real estate has undergone similar escalation, with landlords now
> commonly asking for substantial percentages of stock in pre-IPO companies
> in addition to high rents. I know personally of a deal that fell through
> because the company that lost was unwilling to give approximately 1% of the
> outstanding stock to the landlord (in addition to the high rent); the
> "winning" company gave more stock+cash.
>
> If Silicon Valley weren't Paradise (esp. for geeks), it wouldn't make
> sense... But...
I think ultimately this is going to affect the favor that the SV has
amongst geek companies. The startups will finally get some sense into
their now pre-IPO-blinded heads and take their companies elsewhere.
Workers will start to realize spending 3-5 hours (or more!) a day in
traffic just doesn't make sense anymore at ANY salary and will move
somewhere else to find work.
It's an equilibrium. I think we have seen the peak of the Silicon Valley
money machine and it's all downhill from here. It's just not fun any
longer.
Sellam International Man of Intrigue and Danger
-------------------------------------------------------------------------------
Looking for a six in a pile of nines...
Coming soon: VCF 4.0!
VCF East: Planning in Progress
See
http://www.vintage.org for details!
Received on Mon May 29 2000 - 22:02:42 BST