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I'm thick and need tutoring.
even though most had no real way of making money, as even people like amazon ran at a loss back then. lots of said web firms then went bust.
prices of these stocks rose drastically compared to the earnings and earnings potential of the underlying company, people bought ANYTHING connected with the internet without discernment thus increasing demand for those stocks and pushing the prices of the stocks higher and higher.
Since the share price increases weren't based on the fundamentals of the companies, it was only a matter of time before people would realise that the shares were priced ridiculously high, The euphoria that allowed the thinking that all internet stocks would keep going up forever came crashing down and turned to panic and hysterical selling when this happened
The wikipedia article on it is actually pretty good and give more detail than i just did..
was new and expanding.....because people did not know the limits to this market and because it seemed to always be expanding a lot of the very canny people, kept up with the enthusiasm saying 'yeah buy into this.....buy stuff/shares....invest invest invest' (and of course the people who keep saying yeah its just gonna keep getting bigger are those who make dosh from saying that sort of thing (or from the results of loads of people acting on what they say......brokers and investment firms get dosh from share dealing and stuff, cos most people dfo not do it all themselves.
When saturation (or at least some limit) is approached it is still not realised that perhaps people should slow down (afte all the 'experts' in the market industry who advise and stuff, like their commissions and payments.....also other markets in general ride high when there is boom in any particular area (on the whole) so basically all markets tend to do better when there sems to be unlimited optimism and enthusiasm in another market......so basically cos they are greedy cunts who have virtually no morality or integrity (on the whole) the investment and market industry just allows 'nature to take its course' and they have their own commission and salary feeding frenzy whils they can, after all what benefit is it to them to be a moaning minnie and slacken off and say well we'd better slow down now (which would involve them taking an involuntary slowdown in commissions and bonuses) ....they are not like that.....they are like 'get as much as you can when there is stuff available for you to get'
they are scummy shits.....like criminals on a massive scale, but it is so nebulous and indirect that they could never actually be condemned as criminals.......yet morally they are, and they cause such widespread damage to the whole of societies that the fact that societies sort of tolerate this sort of blatent greed and immorality and unfairness is a reason that society no longer looks at itself or why it tolerates this sort of behaviour, becAUSE TO TRULY LOOK AT IT WITH UNBLINKING EYES IS To acknowledge societies own incredible crapness at allowing it.
('bubbles', and their bursting, is a well known aspect of investing, so there is no excuse)
the above post is nonsense unless i make this rectification :D
have awful consequences to others. But you know this, and in your heart you know why....because societies are 'ruled' by something that is called 'an administration' , but this in combination with legislation amounts to being ruled.......now because the 'an administration' is sometimes allowed to be changed (because people hate the last prime ministers smile, or because the president has an affair with an aide, or because the world economy has started to collapse, or because people are just sick of the same old and so they hope for a fresh start) they have decided to say that this is democracy, and the best sort of admin......there is no attempt to improve or expand that democracy to actually incorporate new ideas or new legislature (yes i know there are sops at introducing new stuff with BIG titles but little content,,,,and not driven by the peoples choice but driven by the fact that the people voted fpor the administration so they must also want everything that the new admin gives them....blah blah blah) etc etc etc