Space Ramblings

Will Wall Street’s Long Winter Abort a Second Dot Com Bubble?

The disaster unfolding on Wall Street may be a mixed blessing of sorts in that it’s likely to abort the rush into a second dot com bubble, and while a second dot com bubble would not have been anywhere as disastrous as the housing bubble, at least to ordinary Americans, it might be a blessing in disguise that the huge losses may decease enthusiasm for putting out companies that have no realistic business plan, only a load of hype and a brand name behind them. The bubble comes too late to stop the likes of Cuil, a train wreck in the making if there ever was one, but by actually holding tech companies to a standard we may see less vaporware, less clueless attempts to cash in by going public when the company has no shot in all of the West Coast of actually turning a dime of profit, and more sanity, which may just lead us to having an effective and workable tech boom, instead of the usual Wall Street boom and bust cycles in which each trend leads irrevocably to its popularization, monetization and then disaster, only to repeat the cycle again. Both the housing industry and tech industry just played host to their own greed and Wall Street’s need to sell a product that doesn’t actually exist or work.

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