Tag: bubble

Overbought

Overbought

“I had to cover my shorts.” That’s what my friend Matt told me after the company came out with its quarterly earnings and issued upbeat projections. I asked Matt, “how long are you going to keep shorting these companies. This is like the 10th time you’ve been forced to cover.” […]

Property, inequality and financial crises

Property, inequality and financial crises

So where did they get the money?

It’s an all too familiar story. Inflows of foreign capital, mainly from Scandinavian banks, attracted by low interest rates and a population hungry for credit – credit advanced, of course, against property. Latvian house prices soared and there was a construction boom. Easy credit, wealth effects and incomes from construction and real estate activities also fuelled a consumption boom: suddenly Latvia, one of the poorest countries in Europe, was flooded with Porsches and Bentleys.

More on the new internet bubble

More on the new internet bubble

There is definitely a technology bubble brewing. And it will end badly. Some people are going to get rich though – and not necessarily undeservedly so. Some thoughts below I am going to make this very short. Valuations in the private Internet space are out of control and they have […]