SevenCubed - 4:48 pm on Sep 26, 2012 (gmt 0)
I'm taking the time to re-read this post this morning and I have a question. What would you consider to be the point when the bubble bursts? What would be a telltale sign that the threshold has been crossed such as last month we were not there but this month we are?
As far as I can see the bubble already burst back in 2008 when the DJIA dropped 7% when it peeled off 777 points, that was a burst. (I luv those numbers btw, beautiful choreography).
Also, what was the effect of the last one back in, was it 2003 I think? It didn't really stop internet growth. What it did affect was it caused venture capitalists to back off injecting money into companies that were only flying based on ideas rather than concrete business plans. The mood of the time was that if it's on the internet it's going to be wildly successful so VCs were throwing money at charlatans. Of course it had to burst.
Whereas since then the internet has matured, and legitimate businesses migrated to the internet en masse. That has created a stable perception that the internet is legitimate and useful for commerce but it's not a one-size-fits-all situation.
Needless to say there are still going to cases like the one you point out such as facebook but don't you think they are the exception rather than the rule?