How I Realized The Internet Bubble Was A Pyramid Scheme
from the kinda-sorta dept
Robert Loch writes "An opinion from a Wall Street analysist turned blogger. It is quite an interesting analogy, that appears to hold merit. That said, I'm not sure any article on this subject is complete without commenting on the corruption that existed at the time within certain factions of the investment community." I actually know quite a bit about pyramid schemes (and so-called "legal" MLMs) and even spent a weekend a couple weeks back trying to convince a friend of the basic math and business reasoning for why they're a waste of time and money. I've also seen a number of other people refer to the internet bubble as a pyramid scheme - though (as the writer finally admits at the end) he's really only talking about ad-supported media in this article. I think he's stretching the definitions a bit to make it fit his premise, so I'm not sure the analogy really fits, but it's still interesting to think about. I would be more interested in looking at how (instead of banner ad sales) analysts encouraged more people to buy dot com equity (and to convince their friends and family to buy more equity as well) as a pyramid scheme.
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