As SLL observed in “The Corporatocracy,” an awful lot of money is being thrown at companies that may never make any money. From Bill Bonner at bonnerandpartners.com:
GUALFIN, ARGENTINA – This week, we got a visit from an Austrian man who recently retired and is spending five years traveling the world.
He has a specially outfitted four-wheel-drive Toyota with such marvels as heated water for a shower, a stove, a kayak, and an iridium-based alarm system.
In case the vehicle gets stuck, it also has a balloon under the carriage that can be inflated to lift the tires up and out of the mud or sand.
“Wow… I guess there’s a lot of new technology involved,” we remarked, just making conversation.
“No… they took the new technology out of it. There are almost no electronics. It has to be fixable… almost anywhere.”
Low-Tech Apple Pies
We do not think much about new technology.
Not only do we know nothing about it, but we also don’t want to know.
We’re perfectly happy with old technology. The low-tech apple pies cooked by our grandmother were as good as any tech-enhanced, plastic-wrapped confection in the grocery store today.
The wood fire we sit in front of every night warms us as well as any electronically controlled central heating system.
And yesterday, Mila – the 10-year-old daughter of one of the gauchos, now enrolled in Elizabeth’s English class – came into our office.
She handed over an old-fashioned note, handwritten on a piece of low-tech paper (no need for batteries or an internet connection).
On it she had drawn a heart, with these words: “I will always be with you and your family.”
Show us the website that can beat that!
River of No Returns
But now, Wall Street seems to be in the middle of a new bubble, even wilder than the last one.
In the bubble of the late 1990s, dot-coms with no proven ability to earn money sold equity worth billions of dollars.
Investors told themselves that the dot-coms would be hugely profitable. Most of them never were profitable at all. In March 2000, their stock prices collapsed.
But today, investors don’t even seem to care about profitability – not now… not ever.
To continue reading: Tech Wreck Coming