Is American Economy Collapsing?

[7bd0d548]

If American Economy Collapsing, will upwork goes down also ?

I hear some banks in America are closing, that triggers many other banks world wide would also.

What will happen to upwork users if that happens ?

[25005175]

The US Economy is not collapsing. AFAIK, only one bank actually went bankrupt. There will be local effects. But the insurance system in place is protecting companies that otherwise would have lost their money. There was a mild panic as some companies/individuals engaged in temporary runs on some other banks - which I suspect was to pull uninsured money out of accounts to place in new ones.

The collapse of the bank in Silicon Valley was due to a "perfect storm" - a trifecta of problems. At least, that's the current understanding of it.

I don't know enough about the Upwork financial structure to say whether Upwork would survive a collapse of the American economy. My hunch is that it would survive, since there would be a huge influx of remote workers who just lost their day jobs - similar to what has recently happened in the tech sector.

ETA: More than one bank, but the banks are now shoring each other up

[8467c28e]

Jonathan,

You are absolutely right. In such a situation, there will be a more intense flow not only on upwork but also on many freelance platforms.

[7bd0d548]

Only 2 famous freelancing based U.S platform in the world.

The rest are like in Europe / Aus / etc

[williamtcooper]

Ely,

No, the American economy isn't collapsing.

Central governments worldwide have increased interest rates too quickly causing a stress on the worldwide banking system.

It's an issue for the whole planet.

[allpurposewriter]

Ely,

Banks close all the time and they never really close; they are always purchased by other banks. 

Is the economy collapsing?  No. In 2008-2012 or so some huge banks closed. The ecnonomy didn't do well those years, but it fell far short of "collapsing." 

[calado-marco]

C'mom man...

From your Upwork profile picture i can deduce that you're old enough to know that you've been trough at least 4 economic crisis. From that you've surely learned that up's and down's on the economy are cyclical.

The current SVB bankruptcy has absolutely nothing to do with the 2008 housing/mortgage security crisis. At the time there was far more exposure and "contamination" to the markets then what exists now, a lesson learned, although some regulations have been overturned. Besides that it's a completely different issue. The 2008 crisis was a time bomb, the SVB is the result of lemming panic behavior.

Doomsday scenarios, apocalyptic wishes don't help, they will only feed unbased conspiracy theories and hysteria.

That said, the correct awnser is yes:

- American Economy will collapse... someday...

Nothing lasts foverever, that's a fact!

If there's something we can learn from our own empirical deductions or from the rational study of History, yes it will collapse. Someday...

Funny enough, what we've also learned is that it's a slow process, specially in major economies. And by slow i mean, centuries (unless there's an asteroid coming)!

The upside is that it also bounces back. Trust me on this. I'm Portuguese. And if Portugal could survive for almost 9 centuries in Europe, most surely the US will survive to!

[allpurposewriter]

Marco,

"Nothing lasts foverever, that's a fact!"

I think time lasts forever, actually.

[25005175]

Hmmmm. Measurable time actually had a beginning. At least one end-of-universe theory stipulates that the universe will end in such a state such that time will measurably end (e.g. Big Crunch).

[allpurposewriter]

Time can't end. The awareness of time can end, but time can't. Time does not need a universe to exist.

You say measurable time. That's awareness. Time spits in the face of such plebeian concerns! Fah!!! 

[25005175]

LOL. I would love to pursue this semi-philosophical, physics discussion. Something to ponder: since time and space are inextricably linked (time-space continuum, special law of relativity, general law of relativity), would not the termination of space simultaneously result in the termination of time? Or is time a higher-order existence/dimension derived from a higher-level, immeasurable background universe? Does the quantum wave-function argue for branching time, such that the collapse of a wave-function is the destruction of a temporal branch?

By the way, for anyone wondering, the chicken definitely came first. Mitosis and meiosis and whatnot.

[7bd0d548]

---

Marco C wrote:

The current SVB bankruptcy has absolutely nothing to do with the 2008 housing/mortgage security crisis.

---

Bruh missed the point, upwork HQ is in SF, by that mean, most likely they put their money in SVB.

That's where their HQ is.

So, I am struggling and thinking if upwork are in trouble, where most of the users would likely going to be or going to do ?

You know why the SVB are falling right ? Because their customers pull off their funds, so the SVB don't have funds for many of the other customers. It's why they said many people are loosing money in SVB, that's why I am worried.

Note :

Two banks in the US have collapsed since 10 March - Silicon Valley Bank (SVB) and Signature Bank - the biggest bank failures since 2008.

[6bfcdaf8]

I think yes and no. It's not a balanced view to say its "collapsing" but money will be more expensive going forward. So as a freelancer what can you do? If you want stability, find customers that have stable source of income. If all your customers rely on huge availability of cheap money then you may be impacted real fast.

When it comes to upwork, it will suffer as much as any other publicly traded company i believe. Because most of these companies were not even profitable. People were investing due to a) future expectations b) low interest rates. Now current "feelings" about both are not positive so.

But look, these are about general, big things. "American economy" "Upwork as a big company". Even in the worst of times there will be people / businesses thriving. So as a solopreneur you have a chance to thrive. We better focus on that part. 

[colettelewis]

If the American economy collapses (unlikely at the moment even though times are difficult) then yes, force majeure, Upwork would likely take a dive too. But really, Ely, rather than relying on hearsay, why not follow, listen, read and understand what is actually happening politically and economically globally.  Things are bad (really dreadful for some countries), but at the moment, the lifeboats seem to be functioning, so hang on to your hat ...  

[a1ebd38c]

I think that both EU and US economies' collapse is obvious, inevitable and only year-to-year postponed ever since 2008. This indeed could be the collapse, but it is not coming out of left field for sure.