(10-17-2010, 02:05 PM)kandrathe Wrote: Most dot com investors were clueless about whether, and how the companies they were investing in could ever make a profit, or the size of their potential markets. Making any money by investing then would have required massive doses of prescience, luck, or both. Of the thousands that began in the 1990's, perhaps a few dozen survived.
Fine. And if you were saying "I thought tech stocks were ludicrous at that time," then you'd be right. If you held a broad basket of speculative startups in the late '90s, you would have gotten killed.
But you don't say that. You keep saying "Google." That's one of the companies that shows the flip side - just because some tech stocks were massively overvalued, doesn't mean they all were. Some were actual winners, and Google is the example par excellence of a good bet that got tarred by being in the same industry as the bad ones.
Quote:What is different now, is that due to massive influx of cash into the money supply, we are not experiencing deflation, and peoples wages and income are not being reduced along with the falling prices of goods and services.
Fixed wages accompanied by falling prices practically defines deflation. If that is what we are seeing, how are we not experiencing deflation?
-Jester