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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (38537)	10/19/2000 3:55:40 PM
From: Jacob Snyder	Respond to of 70976

re: The willingness of investors to pay big bucks for public offerings also stimulated the flow of funding for startups from venture capitalists, who knew they could easily take their companies public. This is not a sustainable economic model. What happened, for 3 years (ending this Spring), was a massive transfer of wealth from retail investors, to venture capitalists. Credit standards, and the threshold for taking a venture public, were far too low. Any idiot could get all the money he wanted, for any idiotic idea. For 95% of the BTB/BTC IPOs, the only people who make money, are the people who got their shares before the IPO, and sold into the mania. Oh, I guess the firms who take them public, and have a UltraStrongBuy (while selling their shares), they win also. Everyone else loses. Retail investors have figured this out, and gone on strike. From now on, if you want financing, you'll have to have things like cash flow, proven management, proven market, rather than just a BrilliantConcept. The RoadToHell is paved with EasyMoney. And Greenspan knows this. JS@waitingfor30.com

To: michael97123 who wrote (38537)	10/19/2000 7:38:37 PM
From: Cary Salsberg	Respond to of 70976

You will know that the bear market is over when "New Economy"/"Old Economy" BS featured in this incredibly stupid editorial disappears. Our economy does not need a Fed induced bubble to promote technological advance. If most of the IPOs of the last 2-3 years go belly-up, we require a new business plan from the venture capitalists. The "virtuous circle" grew to absurd proportions, and became a vehicle for the unethical transfer of wealth fr6m average investors to greedy and unprincipled "entrereners", vent4re ca5ta35sts, and reta53 br62ers.