Bubble 2.0 coming soon
pcmag.com
John Dvorak has a bad record spotting success stories. So if he is calling it a bubble... http://en.wikipedia.org/wiki/John_C._Dvorak
pcmag.com
Lots of lame startups are getting funded, but for far less money apiece. And it is the scale of investment that defines a bubble, not the number of companies.
At the same time, since not nearly as many outsiders are betting their life savings on the 'bubblers', the economy wide impact of even the most devastating sector wipeout, won't be nearly as bad as dot bomb.
In that respect, how you'll come to view it will depend largely on where you stand.
It could also be that what we are seeing is the leading edge of PG's predicted trend for more young people to enter working life by doing a startup, rather than going to work for someone. This would probably in and of itself lead to an economic landscape looking a bit 'bubbly' by historical standards.
I guess only time will tell.
You'd think that after living through two real bubbles we might develop some higher standards. Instead, the word "bubble" is getting applied to every fad, era, technology, and press release that comes along.
Where he's wrong:
1. It won't be as bad as dot-bomb.
2. It has nothing to do with the type of product, and everything to do with investment hype and greed.
"We're in a bubble!"
"CD-ROMs ... Pad Comp--SPREADSHEETS!"
"People are talking to each other on the Internet! Even in Second Life! It's crazy!"
"There are videos on the Internet!"
"People are making things on the Internet!"
"Google thought of something I wish I had!"
"Widgets!"
There also seems to be a general disregard for business models (which I know can come later, but it's GOT to come SOMETIME).
Give me a break, or at least some evidence of a second IPO craze and examples of growth before profit companies you think are doomed. This is mostly sensationalism, little fact.
It is harder to have an equity collapse when companies are small and barebones.