In 2000, the tech sector fell while the douchebag sectors laughed. In 2008, the tables have turned.
As the mortgage-backed securities market implodes, taking long-standing banks like Bear Stearns with it, investors are wondering whether we’re in for a repeat of the dot-com implosion of 2000. The answer, say some economists, is no — and while the outlook for the overall economy is grim, the tech sector may not take a direct hit this time.
“The bust in 2000 was isolated in the dot-com and IT sector,” says Brent Goldfarb, an assistant professor of management and entrepreneurship at the University of Maryland Robert H. Smith School of Business.
Myles Weissleder, a longtime net entrepreneur who weathered the last economic storm, says that if anything, the Bay Area feels insulated from a recession.
“I don’t think people here are feeling what the folks are feeling elsewhere in the country,” says Weissleder. “Locally, we have a resilient economy. There are a million and one entrepreneurs, and I haven’t heard from [one] who has had a hard time securing capital. Zivity, a user-generated porn site, just secured $7 million. I would venture to say that a company that’s posting nudies on the internet doesn’t need $7 million to do that. I’m not sure if it’s dumb money, or if it’s a sign that people are still investing, but I’m seeing a lot of young companies get funding.”
Matt Marshall said it best: “Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million.”
I still remember the taunts I got from tech-haters during the dotcom crash. Today, I’m watching them panic while my traffic numbers go up. Revenge is sweet.
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