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Member Run Boards >> Finance and Economics >> Remember the dotcom bubble?
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Message started by bogarde73 on Mar 20th, 2017 at 9:30am

Title: Remember the dotcom bubble?
Post by bogarde73 on Mar 20th, 2017 at 9:30am
This article points to some indicators suggesting another one is about to burst.

http://www.zerohedge.com/news/2017-03-18/signs-silicon-valley-tech-bubble-about-burst

"So, how does this moment compare with the time leading up to the dotcom crash?  Here is the take of one Silicon Valley software recruiter:

“I got here in 97 and it was like it is now – incredibly packed, impossible to commute, high apartment costs,” Dinan said.

"We’re seeing overvalued companies, funded based on hopes and dreams and aspirations and not good business models. Companies counting users and eyeballs rather than profits. There are a lot of similarities.”

Another echo of the dotcom era is what Dinan calls “bad habits” such as the allegations of sexual harassment at Uber and human resources startup Zenefits cheating on mandatory compliance training.

“There was a lot of crazy behaviour in the late 1990s, including sexual harassment. It’s a result of there not being discipline,” Dinan said.

“The [dotcom crash] happened very suddenly and without any warning,” Damodaran said. “When it does happen everyone says they saw it coming. If you saw it coming then why didn’t you get out of it?”

Well, when all else fails there's always the 'negging' option to drive valuation..."

Title: Re: Remember the dotcom bubble?
Post by The_Barnacle on Mar 22nd, 2017 at 11:10am
Zero Hedge is a batshit insane Austrian school finance blog run by two pseudonymous founders who post articles under the name "Tyler Durden," after the character from Fight Club. It's essentially apocalypse porn. It has accurately predicted 200 of the last 2 recessions.

http://rationalwiki.org/wiki/Zero_Hedge

;D ;D ;D ;D

Title: Re: Remember the dotcom bubble?
Post by bogarde73 on Mar 22nd, 2017 at 4:25pm
So what have you got against Austrian economists?
Schumpeter for example was a great theorist and visionary.
I'm willing to look at data put up by anybody whereas, despite your protest about freedom of speech in your postscript, you give a very good impression of a closed mind.

Title: Re: Remember the dotcom bubble?
Post by The_Barnacle on Mar 23rd, 2017 at 10:06am
I don't have anything against Austrian economists.
I did however find it amusing that zero hedge have accurately predicted "200 of the last 2 recessions". It sums them up and reminds me of perceptions now and a few other posters I have come across in the past.

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