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Pastimes : The Naked Truth - Big Kahuna a Myth
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To: John Pitera who wrote (79982)12/16/1999 2:28:00 PM
From: pater tenebrarum  Read Replies (1) of 86076
 
oh, he's basically right...in essence, the same occurred in the 1920's. that didn't keep the bubble from bursting eventually. during that period a whole host of new industries came into being and productivity rose at a similar rate as today. what he is missing is that at the heart of the bubble is the expansion in the monetary aggregates. the changes in the economy merely provide direction to the excess money so to speak. i don't doubt for a second that the majority of the 'new economy' co's that have come into being over the past year or two will eventually go under, as did their counterparts in e.g. the auto industry earlier in the century.
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