Michael Perelman wrote:
>Of the state of California reported today that unemployment is up
>because of the recent declines in the dot.com stocks -- prior to the big
>
>swoon. Dean Baker, who is gracing our campus with his presence today
>expressed skepticism. It made some sense to me since both acquisition
>and growth seemed to be driven by stock market prices.
>
>Following this logic, perhaps the stock market has more real effects
>than it previously did. Do you agree, Doug?
The whole dot.com thing is fed by the stock market; no irrational
exuberance, and the sector's on the ropes. Venture capitalists,
bankers, and bondholders who've been financing the losses have all
been doing so on the basis of the stock market - so if their share
prices tank, the money-burners won't get fresh cash.
Word is that the sex site Nerve.com, which has been hoping for an
IPO, is laying off one to two people a week. A blow to literate smut
on the web, for sure.
Doug
