People loved dot-com companies until they didn’t. Then they loved credit default swaps until they blew up. Now they love cash-burning companies.
There’s a famous quote ahead of the 2008 financial crisis: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” That’s Citigroup Inc. then-chief executive officer, Chuck Prince, discussing cheap, debt-fueled private equity deals less than a year before the economy collapsed.