• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 17. What Does the Future Hold? > Smaller Bubbles and Less Damage

Smaller Bubbles and Less Damage

The Internet bubble did more damage to small investors and to the economy than it helped technology; in fact, it set technological advance back to a degree. In consequence, fewer bubbles—less excess in the capital markets—can be gained at little or no price in terms of innovation and progress in our economy.

The bubble was a result of financial institutions just doing their jobs. Venture firms took an unexpectedly large inflow of capital and spread it out to a large number of start-up firms, and quality of investments was lost in the process. Investment banks sensed the increasing public excitement about the Internet and packaged IPOs for sale. The media fanned the public mania; the government gave its blessing in variety of ways. As has happened so often in recent history, in many different settings, professionals were just doing their jobs, but the result was a disaster, especially for the most vulnerable.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint