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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: HG who wrote (42203)	1/4/1999 11:06:00 PM
From: epicure	Respond to of 132070

We have manias constantly and they are driven by greed, which is in turn an outgrowth of our deep desire to hoard resources to survive. Beanie Babies are a mania, furbies are a mania (every Christmas there is one toy that sparks one- but these are small). Net stocks might have value - but only if you can find someone to sell the stock to. Many of these companies have business models that do not work, and will never work- but it is not apparent at this point which ones will fail. Clearly there will be winners eventually, but who will they be? Right now it seems to me these stocks are soaking up large amounts of capital- venture capital and capital in the public equity markets. IF many of these companies NEVER have a return on equity we will have a situation analogous to Asia- where companies that should not have gotten credit, and that should have died, sopped up money until the bloated market eventually expired, and everything crashed- the good and the bad. Crashes are, I think, inevitable. Not merely because of the cycles of greed and fear, but also because horrendous events DO happen, and will happen in the future- and those external events while not predictable are limitless in possibility.