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This thread will track the best of the various reviews and coverage of EJ's cover article in the February issue of Harper's Magazine. Go here for information on how to get a copy of the magazine.
As One Economic Bubble Bursts, Another Takes Hold
Jan. 15, 2008 (The Informed Reader, Wall Street Journal)
The next bubble in the U.S. economy should be taking hold right about now, entrepreneur and investor Eric Janszen writes in Harper’s Magazine.
After years in venture capital, Mr. Janszen now runs iTulip, an investment Web site premised on the idea that the financial sector has locked the U.S. into a damaging cycle of bubbles that are disconnected from the actual health of the economy. According to his theory, the finance, insurance and real-estate businesses survive by pouring capital into a sector, creating a self-fulfilling prophecy that asset prices will rise. When prices collapse back to their true value, financiers make up their losses by pouring capital into another sector and creating another bubble.
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A Coming Bubble in Alternative Energy?
Jan. 14, 2008 (Business Insight Zone, Hoover's)
As a member of a venture-capital firm that invested in technology companies in the late 1990s, Janszen had a front-row seat for the dot-com boom and bust. He also writes engagingly, and he offers a clear narrative of post-WW2 economic cycles — clear along a certain line of analysis, anyway. On the other hand, his business is to make contrarian, bubble-oriented economic analyses, and in his treatment alternative energy — or, I should say, the market in it — becomes a punching bag.
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Necessary Bubbles
Jan. 14, 2008 (Marginal Utility, Pop Matters)
In the most recent Harper’s former VC honcho Eric Janszen puts an apocalyptic spin on this thesis, claiming that the American economy has replaced the business cycle, the bugaboo of economies past, with a hyperaccelerated bubble cycle.
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As One Economic Bubble Bursts, Another Takes Hold
Jan. 16, 2008 (Gmercu.com)
The next bubble in the U.S. economy should be taking hold right about now, entrepreneur and investor Eric Janszen writes in Harper’s Magazine.
After years in venture capital, Mr. Janszen now runs iTulip, an investment Web site premised on the idea that the financial sector has locked the U.S. into a damaging cycle of bubbles that are disconnected from the actual health of the economy. According to his theory, the finance, insurance and real-estate businesses survive by pouring capital into a sector, creating a self-fulfilling prophecy that asset prices will rise. When prices collapse back to their true value, financiers make up their losses by pouring capital into another sector and creating another bubble.
____
The Next Market Bubble is Here Already
January 17, 2008 (Seattlest)
The mass insanity of the housing bubble over the last few years has pretty fully revealed itself by now. One need only visit our good friends over at Seattle Bubble to read about the increasing devastation. On Jan. 15, Tim posted the big news: according to the Northwest Multiple Listing Service (NWMLS), King Co. finally posted negative year-over-year median closing prices on housing. According to the same report, active listings are up in the YOY comparison (51%) and pending sales are down (by 33% YOY), both records. In other words, the market is flooded, demand is down, and housing prices are falling.
As One Economic Bubble Bursts, Another Takes Hold
Jan. 15, 2008 (The Informed Reader, Wall Street Journal)
The next bubble in the U.S. economy should be taking hold right about now, entrepreneur and investor Eric Janszen writes in Harper’s Magazine.
After years in venture capital, Mr. Janszen now runs iTulip, an investment Web site premised on the idea that the financial sector has locked the U.S. into a damaging cycle of bubbles that are disconnected from the actual health of the economy. According to his theory, the finance, insurance and real-estate businesses survive by pouring capital into a sector, creating a self-fulfilling prophecy that asset prices will rise. When prices collapse back to their true value, financiers make up their losses by pouring capital into another sector and creating another bubble.
___
A Coming Bubble in Alternative Energy?
Jan. 14, 2008 (Business Insight Zone, Hoover's)
As a member of a venture-capital firm that invested in technology companies in the late 1990s, Janszen had a front-row seat for the dot-com boom and bust. He also writes engagingly, and he offers a clear narrative of post-WW2 economic cycles — clear along a certain line of analysis, anyway. On the other hand, his business is to make contrarian, bubble-oriented economic analyses, and in his treatment alternative energy — or, I should say, the market in it — becomes a punching bag.
___
Necessary Bubbles
Jan. 14, 2008 (Marginal Utility, Pop Matters)
In the most recent Harper’s former VC honcho Eric Janszen puts an apocalyptic spin on this thesis, claiming that the American economy has replaced the business cycle, the bugaboo of economies past, with a hyperaccelerated bubble cycle.
____
As One Economic Bubble Bursts, Another Takes Hold
Jan. 16, 2008 (Gmercu.com)
The next bubble in the U.S. economy should be taking hold right about now, entrepreneur and investor Eric Janszen writes in Harper’s Magazine.
After years in venture capital, Mr. Janszen now runs iTulip, an investment Web site premised on the idea that the financial sector has locked the U.S. into a damaging cycle of bubbles that are disconnected from the actual health of the economy. According to his theory, the finance, insurance and real-estate businesses survive by pouring capital into a sector, creating a self-fulfilling prophecy that asset prices will rise. When prices collapse back to their true value, financiers make up their losses by pouring capital into another sector and creating another bubble.
____
The Next Market Bubble is Here Already
January 17, 2008 (Seattlest)
The mass insanity of the housing bubble over the last few years has pretty fully revealed itself by now. One need only visit our good friends over at Seattle Bubble to read about the increasing devastation. On Jan. 15, Tim posted the big news: according to the Northwest Multiple Listing Service (NWMLS), King Co. finally posted negative year-over-year median closing prices on housing. According to the same report, active listings are up in the YOY comparison (51%) and pending sales are down (by 33% YOY), both records. In other words, the market is flooded, demand is down, and housing prices are falling.
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