Very common amongst tech startups, too. "Sure we aren't profitable yet but we will be, it's totally okay to lie to employees and investors because by the time it's a problem, we'll have succeeded!"
I've personally been burned by an incompetent tech startup that lied to its employees about the valuation because the real value was dirt but they kept hoping they'd "fix" things before it became a "real problem."
It's just like kids spinning elaborate lies to get out of trouble, it always builds up and they can't get out of it. And they're incapable of seeing that parallel, too. They don't view it as a sign of "I'm fucking clueless and need to stop" they view it as "boldly embracing a challenge."
