We have had a cheap money policy for way too long now, decades literally. It is not just US, but also the fast growing developing countries, who all tend to keep interest rates very low.
We've also had bubble after bubble, after bubble.
Is tech 2.0 a bubble?
1. Even if it is, it's not nearly as big or stupid as .com 1.0 was.
2. Oil, gold, a bunch of other stuff, too much money is chasing things to buy. Is it a bubble of just an early pre-view of what inflation will do to EVERYTHING?
3. Some prices certainly do seem extremely speculative, LinkedIn being a prime example, obviously they are worth something, but are they worth THAT much?
I think we're in a tech maturing period, that is to say, that if valuations of a bunch of tech companies suddenly collapse, other tech companies won't be affected. When tech stops being identical to all other tech, the market has reached a sort of maturity.
But yeah all markets are acting screwy right now, between a likely default of Greece and who know else, and 0 or even negative interest rates in the US, Japan, and the EU.... yeah, we live in strange times.
We've also had bubble after bubble, after bubble.
Is tech 2.0 a bubble?
1. Even if it is, it's not nearly as big or stupid as .com 1.0 was.
2. Oil, gold, a bunch of other stuff, too much money is chasing things to buy. Is it a bubble of just an early pre-view of what inflation will do to EVERYTHING?
3. Some prices certainly do seem extremely speculative, LinkedIn being a prime example, obviously they are worth something, but are they worth THAT much?
I think we're in a tech maturing period, that is to say, that if valuations of a bunch of tech companies suddenly collapse, other tech companies won't be affected. When tech stops being identical to all other tech, the market has reached a sort of maturity.
But yeah all markets are acting screwy right now, between a likely default of Greece and who know else, and 0 or even negative interest rates in the US, Japan, and the EU.... yeah, we live in strange times.