The WeWork debacle should be an indictment of modern finance | Nesrine Malik

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The workspace company’s troubles are a sign that the ‘unicorn’ economic model cannot be sustained, says Guardian columnist Nesrine Malik

It happens every few years – not quite with the regularity of the seasons but with the inevitability of a natural disaster. A new company is founded on the basis of a new and seemingly ingenious concept, and then rocket-fuelled by growth-boosting investor capital. It briefly burns bright and then implodes, collapsing under the weight of its own balance sheet.

 

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luckylucho78 Esto cada vez se parece más a la serie 'silicon valley'. 😂 Empresas con filosofías 'Hacer del mundo un lugar mejor' pero nada de sustento financiero o responsabilidad laboral. 🤷‍♂️

Modern finance, yes. Capitalism writ large?, no. As you point out on the article, the largest investor by far was a sovereign wealth fund. As in, a state actor. State intervention in the economy is not capitalism at all.

Well, unsupportable business models worked for Uber whose investors are still subsidizing every ride. But WeWork had a smell about it from the beginning. And Neumann's obvious greed was not a good sign.

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