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Transcript - does the media fuel bu


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Transcript - does the media fuel bu

  1. 1. The bubbleDoes the media fuel bubbles?NarratorThere were endless waves of investment in dot-com businesses fuelled by excitable newsreports – the momentum was now beginning to feed itself.Interview SyncEvan Davies: The City Uncovered Episode ‘The cash was flowing like Ancient Egypt. Itwas amazing.You could fund a drawer full of socks back in those days and people were giving 60 millionhere, 80 million there; there was a hysteria here that we’ve never seen since.’NarratorSome of the dot-coms spent their money in extraordinary ways.Rory Cellan Jones‘And there was an atmosphere of incredible profligacy – a great example – Boo dot-comdecided that it needed on its front page an avatar, a person to invite people into the site, shewas called Miss Boo and they decided Miss Boo’s hair didn’t look quite right, so they called upNew York and got New York’s top hairdresser to fly across the Atlantic to Britain to re-styleMiss Boo’s hair. Not a real person, but they spent real money on a real hairdresser to comeand redesign the hair of Miss Boo.’NarratorMore and more ordinary people were swept up in the excitement of the dot-com frenzy.Barry Lake is a quantity surveyor from Essex, and a member of an investment club…Barry Lake‘I really didn’t know much about stocks at all, but a friend of mine had seen an idea,investment clubs, I think he read it in the paper or something, and he rang up a load of hismates, me included, and said right, okay, we’re meeting down the pub, be there. So I did.We did feel that it was something the ordinary guy in the street wouldn’t do until you get aninvestment club and we realised that, yeah, it is something the ordinary guy in the street couldnot only do but could get some enjoyment and hopefully a bit of profit out of as well.’NarratorThe enthusiasm for the dot-coms was spreading across social boundaries and the world.John Coates‘The dot-com wasn’t a bubble that was confined to the investment or trading Community. Thepublic was caught up in it.Normally when you visit a bar in an airport in America, people are watching American footballor baseball, but during that period they weren’t. They were watching financial news networksand punching the air when the stock ticker came up.The whole population was caught up in that particular bubble.’NarratorTraditional valuation techniques for companies were set aside or ignored altogether.