Most Of My Tech Stocks Have Gone Up By 50%-150% In The Past Six Months. Are We On The Verge Of Another Bust?

Quite possibly. But predicting another bubble does not make one a genius, for venture capital violates rudimentary free-market principles and thus will cause cyclical implosions of valuations. Not until, of course, enough greater-fools have finally figured out they have been taken for a ride. The question, therefore, is not if, but when.

Mind you; it is essential to understand that the bubbles created around technology innovation are primarily caused by the overwhelming subpriming of its financial arbitrage (venture capital), in the words of Einstein: for the thesis determines what can be discovered. Hence the bubbles bursting are not dot-com bubbles, but subprime venture bubbles.

An understanding of that distinction may help in forecasting when the greater-fools have had enough and pulled their money out. The greatest greater-fool is, of course, the individual who ignores how venture capital as a financial instrument is allowed to fly under the radar of scrutiny (and violates SEC finance rules) and deploys an arbitrage void of verifiable merit. And thus, induced by its self-induced subpriming has become blind to the discovery of outliers who break the norm.

Expect this mess to continue until we force venture capital to comply with a modern operating-system to safeguard the interests of humanity. Until that time, be careful you are not the last of greater-fools from yet another cyclical resonance to reality.

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