Web 2.0 Bubble Ready to Burst?

Looks as if people are finally beginning to wise up to the fact that today's Web 2.0 economy may soon go kerflouie. The New York Times is finally writing about the reality of today's tech economy, in a front-page article entitled Silicon Valley Start-Ups Awash in Dollars, Again (Breathtaking Sums Hint at Revival of Dotcom Bubble). Industry insiders are raising the alarm that the Online Ad Industry is Partying Like It's 1999.

I'm glad that people are waking up to the craziness of today's online valuations, which are based not on fundamentals, but on speculative craziness. Companies are being given all the wrong incentives, VC's don't even care which players they're placing bets on, and the whole industry is poised to plunge into the abyss.

The bubble is real. The only question is when it's going to burst: next week, next month, or next quarter. Keep your heads down, people.