Money (in the form of buying power) can't be created from nothing, so whenever a bad idea/execution is funded, it takes away buying power from companies that have better execution, but less access to cheap loans.
As an example I personally know a CEO who had a great idea, great exececution, but a new competitor startup was funded with millions of dollars of cash that threatened to sue him in the US. He didn't have money for lawyers, so he became in a bad position very fast, even if he was quite certain that the competitor didn't have any case against him.
Another example is cheap loans driving up ad prices and rent in SF, which I have seen often talked about here.
As an example I personally know a CEO who had a great idea, great exececution, but a new competitor startup was funded with millions of dollars of cash that threatened to sue him in the US. He didn't have money for lawyers, so he became in a bad position very fast, even if he was quite certain that the competitor didn't have any case against him.
Another example is cheap loans driving up ad prices and rent in SF, which I have seen often talked about here.