Wednesday, January 7, 2015

Most Fundamental Indication That We Are in the Heart of a Serious Tech Bubble

You know that we are in the intense phase of a Federal Reserve money pumping tech bubble when the major establishment  newspaper at the epicenter of the bubble is printing a report with the headline: Sometimes Talk of a Tech Bubble is Mostly Babble.

The San Francisco Chronicle article starts this way:
 Tech bubble talk — like booms and busts themselves — comes in cycles. There is always someone out there crying bubble, it seems, but it’s often specific news events that bring on tech bubble panic.
The Chronicle tracked mentions of the phrase “tech bubble” both in news media and Google searches during the past five years and found that tech bubble anxiety tends to increase around major IPOs and acquisitions.
Such chatter has little to do with broad tech stock performance.
There’s plenty of risk in the tech sector, but recent bubble speculation hasn’t amounted to much more than panicky headlines.
I do not believe the bubble is going to pop anytime soon, but from what I see and hear at ground level of the Silicon Corridor, dumb money is pouring money in at exponential rates into deals that have zero chance of working out.

The same issue of SFC that reports there is no bubble, in another part of the paper reports:
 Last year, corporations operated 1,100 venture funds, a 43 percent jump from 2010, according to a report by industry tracker and media company Global Corporate Venturing.

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