Have We Learned from the New Economy?

prostoalex writes "The new issue of Fast Company magazine looks at the so-called New Economy in retrospect. There were some myths about the Internet that were not true, or could be considered true only partially in the brief history of the Internet boom, there were people who got burned and those who nicely cashed out and then there were those who had to start a new life because of the Internet."

Comments

nope, not really

[dh003i]

There will always be booms and busts until The State stops inflating the monetary supply. In other words, until we get The State out of money, and go back to allowing the free market to choose money. This would almost certainly result in a gold and silver standard, with banks issuing bank-notes redeemable in certain weights in gold or silver. Fraudulent note-issuing would be checked by bank-runs (banks would no-longer be protected) triggered by customers and other banks. Also, fractional reserve banking is a fraud in which banks loan out assets they don't have title to, while still claiming to be able to redeem at any time (in other words, there is no way they could possibly meet all of their obligations, thus are insolvent at all times). See this article.