Comments on: Technology & Finance Bubble Aftermaths http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: johnbougearel http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-182849 johnbougearel Sat, 13 Jun 2009 06:11:54 +0000 http://www.ritholtz.com/blog/?p=28471#comment-182849 This was a great visual from Ron Griess, particularly when you add a pic of the Nikkei sinc 1989 alongside it ~ still trading a 75% discount ot peak valuations 20 years ago. This was a great visual from Ron Griess, particularly when you add a pic of the Nikkei sinc 1989 alongside it ~ still trading a 75% discount ot peak valuations 20 years ago.

]]> By: expertexpat http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181755 expertexpat Wed, 10 Jun 2009 23:51:15 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181755 Total credit market debt as a percentage of GDP has risen from 130% of GDP in 1952 to 350% of GDP today. The various bailout and stimulus schemes enacted in the last year will drive this percentage above 400% in the near future. When a country allows this much debt to accumulate versus its GDP, they have done something seriously wrong. The country’s politicians, business leaders, and citizens have all contributed to this disaster. recommended reading...<a href="http://url9.com/y0" rel="nofollow">good articles</a> There is also the rational level, of which to I am referring to above. Realistically, I know the beast in us will take over and this will end like it did in France in the 1790's. I will, however, not be the one holding the sword. Total credit market debt as a percentage of GDP has risen from 130% of GDP in 1952 to 350%
of GDP today. The various bailout and stimulus schemes enacted in the last year will drive
this percentage above 400% in the near future. When a country allows this much debt to
accumulate versus its GDP, they have done something seriously wrong. The country’s
politicians, business leaders, and citizens have all contributed to this disaster.

recommended reading…good articles

There is also the rational level, of which to I am
referring to above. Realistically, I know the beast in us will take over and this will end
like it did in France in the 1790′s. I will, however, not be the one holding the sword.

]]> By: larry http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181405 larry Wed, 10 Jun 2009 15:00:34 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181405 The tech bubble had several factors. Y2K, maybe. But the Internet/.com and telecom stocks were driving the bubble. I'd like to echo alfred e's sentiment. People remember Amazon.com and pets.com, etc. but what about the emergence of Qwest, Global Crossing, WorldCom, etc.? Yes, there was a fundamental technological change: the switch from circuit to packet switching networks. But that has taken the better part of the last decade to play out. The tech bubble had several factors. Y2K, maybe. But the Internet/.com and telecom stocks were driving the bubble. I’d like to echo alfred e’s sentiment. People remember Amazon.com and pets.com, etc. but what about the emergence of Qwest, Global Crossing, WorldCom, etc.?

Yes, there was a fundamental technological change: the switch from circuit to packet switching networks. But that has taken the better part of the last decade to play out.

]]> By: TheTradingReport » Blog Archive » links for 2009-06-10 http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181356 TheTradingReport » Blog Archive » links for 2009-06-10 Wed, 10 Jun 2009 13:51:13 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181356 [...] Barry Ritholtz: Technology & Finance Bubble Aftermaths [...] [...] Barry Ritholtz: Technology & Finance Bubble Aftermaths [...]

]]> By: links for 2009-06-10 | Bailout and Financial Crisis News http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181296 links for 2009-06-10 | Bailout and Financial Crisis News Wed, 10 Jun 2009 09:00:21 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181296 [...] Barry Ritholtz: Technology & Finance Bubble Aftermaths [...] [...] Barry Ritholtz: Technology & Finance Bubble Aftermaths [...]

]]> By: alfred e http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181221 alfred e Tue, 09 Jun 2009 21:09:41 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181221 @constantnormal: Y2K fueled tech bubble? Don't think so. Other comments re VC$$. Close. Wall street created the tech bubble out of the vapors. The telecom reform act of 1996 powered it. CLECs were the Wall street rage. And they had business plans going nowhere and yet WS was pumping. Lucent sank because of their generous financing. A s did Nortel. They were tripping over each other to book sales and pump WS. Jack Grubman? Fraud. Pump. Would have served CNBC quite well as a commentator. Ten year WS cycle. Read "What Really Happened to Lucent". Pump. Lose trust. Wait for people to forget. Rinse. Spit. Repeat. @constantnormal: Y2K fueled tech bubble? Don’t think so.

Other comments re VC$$. Close.

Wall street created the tech bubble out of the vapors. The telecom reform act of 1996 powered it.

CLECs were the Wall street rage. And they had business plans going nowhere and yet WS was pumping.

Lucent sank because of their generous financing. A s did Nortel. They were tripping over each other to book sales and pump WS.

Jack Grubman? Fraud. Pump. Would have served CNBC quite well as a commentator.

Ten year WS cycle. Read “What Really Happened to Lucent”. Pump. Lose trust. Wait for people to forget. Rinse. Spit. Repeat.

]]> By: Marc1 http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181157 Marc1 Tue, 09 Jun 2009 20:02:06 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181157 I agree with km4 who wrote: I think the comparison is N/A The first looks at the 2000 bubble in Technology 1) this was largely driven by too much VC $$$ chasing too few good sustainable business models 2) the term Information technology is too vague and not enough granularity and metrics - once again much of this was Internet puff not enterprise I would add a few points: 3) the tech sector actually creates something (more on point #2 and assuming we don't classify pets.com as a technology company 4) the financial services sector merely allocates capital; it doesn't make the country intrinsically wealthier 5) the post-2001 figures for "Information Technology as a Percentage of S&P500" are artificially low because financial services and real estate were artificially high 6) I recall that the NVCA reports that about $225 billion has been invested through VCs since 2000. Compare that to the bailout/giveaway, and then compare the number of good jobs and true increase in national wealth created. I agree with km4 who wrote:

I think the comparison is N/A

The first looks at the 2000 bubble in Technology
1) this was largely driven by too much VC $$$ chasing too few good sustainable business models
2) the term Information technology is too vague and not enough granularity and metrics – once again
much of this was Internet puff not enterprise

I would add a few points:
3) the tech sector actually creates something (more on point #2 and assuming we don’t classify
pets.com as a technology company
4) the financial services sector merely allocates capital; it doesn’t make the country intrinsically
wealthier
5) the post-2001 figures for “Information Technology as a Percentage of S&P500″ are artificially low
because financial services and real estate were artificially high
6) I recall that the NVCA reports that about $225 billion has been invested through VCs since 2000.
Compare that to the bailout/giveaway, and then compare the number of good jobs and true
increase in national wealth created.

]]> By: willid3 http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181148 willid3 Tue, 09 Jun 2009 19:40:26 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181148 maybe the banksters have figured out how to make money. pump up oil, dump it on investors (AKA suckers), repeat until desired profit has been attained? maybe the banksters have figured out how to make money. pump up oil, dump it on investors (AKA suckers), repeat until desired profit has been attained?

]]> By: dead hobo http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181131 dead hobo Tue, 09 Jun 2009 19:09:33 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181131 10 minutes from today's pump? 10 minutes from today’s pump?

]]> By: leftback http://www.ritholtz.com/blog/2009/06/technology-finance-bubbles-crashes/comment-page-1/#comment-181113 leftback Tue, 09 Jun 2009 18:22:00 +0000 http://www.ritholtz.com/blog/?p=28471#comment-181113 The chart above is missing the Mighty Colossi Henry Paulson & Tiny Tim holding up the financials on their backs. Or to be more correct, the US taxpayers' backs. "This is the new bottom? My arse." "After the 1929 crash, the banking index stayed low for DECADES" True, so true. Those lucky eager punters who bought C and BAC recently will get: .....DILUTED The chart above is missing the Mighty Colossi Henry Paulson & Tiny Tim holding up the financials on their backs. Or to be more correct, the US taxpayers’ backs.

“This is the new bottom? My arse.” “After the 1929 crash, the banking index stayed low for DECADES”

True, so true. Those lucky eager punters who bought C and BAC recently will get: …..DILUTED

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