from the bubbles dept
Now that it’s fashionable to talk about how we’ve all been fooling ourselves, here are a couple of interesting articles in that space. First comes a review of Robert Shiller’s incredibly well timed book, Irrational Exuberance. The review in Salon makes the book sound quite good as it doesn’t simply retread the standard bubble explanations and comparisons, but does actually take a close look at this market, and the companies involved. At the same time we get a cover story from the New York Magazine written by James Cramer, a huge internet hyper over the past 4 years, telling us that the market has crashed and we’re all fools to believe otherwise. I’m surprised when I hear things like this from otherwise intelligent people. Things were definitely over valued, but the ones that have crashed the most are the ones that don’t have a sustainable business model, or a real plan. Real businesses that add real value seem to be doing okay, for the most part.