Monday, August 17, 2020

Once a decade, ready to be conned

The year was 1998 or thereabouts. The dot com boom was at its peak. I was among the few nonbelievers.

A few years later, the dot com bust happened. Validation? I am not sure. Because by 2008, the world believed that just because someone in a pinstripe suit was selling it, bad loans were somehow an investible asset.

Validation? I am not sure. Because 10 years later, we truly believe that companies that don't have a profitable business model deserve to open to record IPOs. That is public money, by the way.

Why does this work? Why does it work so often? And so consistently?

Please do share your thoughts.

If we knew the secret recipe of why that public confidence comes to these businesses, and applied that to real businesses that need public confidence, imagine what that would do.

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