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Like dot com bubble caused the tech sector collapse, the Private Equity and hedge Fund bubble will plummet the banking and financial services sector
Mike Moran
Jun. 20, 2007
The dot com bubble in late nineties finally blew up in the year 2000. The tech sector started retreating in March-April but the dot come frenzy continued till early 2001. I still remember how I sold a dot com for $28,000 that I registered in 1996 out of inquisitiveness for $70 a year.
The bubble in hedge funds and private equity funds is much bigger than that of the dot com and the real estate. The Private Equity funds are buying anything they can find in the Street. The hope is what ever they buy will return handsome profit.
It is similar to a scenario I faced in Internet World, LA in late nineties. I used to work for a Web services company and was in trade show booth of our company. We used to develop Web sites – simply put incubate dot coms. A man came running towards me. He had a bag full of money. He said he inherited the same. Take it and make so dot com out of it that will multiply the money 10 times.
What we see today in Private Equity and Hedge Funds is similar. Money is abundant all around but it does not know where to go!
Like dot com bubble collapsed the tech sector, the Private Equity and hedge Fund bubble will plummet the banking and financial services sector.
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