More People Recognizing The Benefits Of Bubbles

Overhype

from the oh-look-at-that dept

Almost two years ago we wrote about how financial bubbles could be good, if they were about general technology (not about things like tulips). We pointed out that while a lot of people in the middle of the bubble end up losing money, it is a good way to put a lot of money towards testing out a ton of ideas very rapidly and seeing what sticks. It’s rapid prototyping business models and technology. It sucks if you bet on the wrong horse (or are riding it), but for the overall economy, it can be a good thing. It would appear that others are coming to the same conclusion. The Stalwart points out that Wired Magazine now has a story praising the beneficial nature of bubbles. The trick is understanding the nature of a bubble, and looking for specific trends, not “the killer company.”