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Re: Get Ready for Dot-Com Bust II....It's Coming!
by
Anonymous
I disagree that we are headed for another bust. A pull-back may be more likely.
To begin with Booms and Busts are created by credit. The vast majority of people get their hands on cheap credit and bid up prices to unreasonable levels.
The NASDAQ leading into 2000 and the real estate market of today are prime examples. These markets were flooded by the general population and cheap credit. Once the credit is removed, the bust ensues.
But the tech industry today is, as you mentioned, receiving VC money (i.e., much more responsible and accountable money). This is MUCH different then when the general population bids up prices on credit.
A quick scan of the NASDAQ market will quickly show that tech stocks (in general) have gone nowhere in the last 5 yrs. The general public is not getting burned again.
VC investments hardly constitutes a bubble. While pull-backs do occur from time to time, a repeat of the Dot-Com bust from 2000 is not on the horizon.
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