THE UGLY TRUTH: TECH BUBBLE LED TO HOUSING ...

http://www.beet.tv/2008/09/the-ugly-truth.html

The technology boom of the late nineties, and its subsequent bust in 2000, led institutions to create exotic financial instruments to duplicate the steep gains enjoyed during the boom, says professor John H. Vogel Jr, a real estate expert at the Tuck School of Business at Dartmouth.

Earlier this month I sat down with Professor Vogel at the Tuck School in Hanover, New Hampshire. He explains how the tech bubble lead to the housing bubble with mortgage-backed securities, and why the housing bubble burst.




Yesterday, I interviewed Alan Murray, Deputy Managing Editor of the Wall Street Journal, on this very topic. He also sees the Wall Street carnage resulting from the pressure from investors seeking to replicate the big gains during the tech boom times.

We will post our interview with Alan later today.

-- Andy Plesser, Executive Producer

Disclaimer: The Tuck School of Business at Dartmouth is a public relations client of Plesser Holland.

Category:

Science & Technology

Tags:

• bubble
• crisis
• dartmouth
• housing
• john
• mortgage
• school
• tech
• tuck
• vogel

[elwalvador]

Yes "Green" energy i.e. solor, wind, Li-ion batteries, geo-thermal, ext is going to be the next bubble.

The government subsidies, tax breaks, and taxes on "dirty" energy are going to fuel astronomical stock prices. When you start seeing all Green mutual funds coming out and Green ETFs that will be your signal to get. But don't rush in, build a position slowly. Look into A123 (AONE) Li-Ion battery maker, they just IPO'ed so stay away for now but when it pulls back maybe get a few shares.

[1111Camilus1111]

me thinks that's a good call, especially If (when, really) this Cap & Trade bill passes @ glensly

[1111Camilus1111]

He can't figure out why there was a bunch of for sale signs all of a sudden? Really? How about ARMs readjusting on people who had zero money down on an upside-down mortgage (that they could easily walk away from)? This schmuck needs to watch some of Peter Schiff's video

[glensly]

Credit would of been a big issue for DOTCOM stocks, so he is right.

Time to invest in clean energy now, this coming bubble should hold up better.

[asierra1492]

thats wrong, tech bubble stocks went to virtually nothing because their valuations were all wrong, incredibly high prices with no dividend payments in the present or future is not sustainable.

[tyronebiggums3]

Never heard of this guy. Was he saying this 2-4 years ago? If not, he's a day late and a dollar short, and he can STFU. Go read Housing Panic, Calculated Risk, and even my blog, if you'd like to see who is to blame.