The DotCom Bubble in California S1180084 Naoya Ishikawa
Outline● Background● What is the DotCom Bubble?● Global impact● Impact in Japan● The financial sector● Summary● References
Background● In the 90s, Internet companies such as Amazon.com, Ebay and others rose to prominence. Conducting business online promised to change the entire world, and these companies were set to cash in.● Investors smelled opportunity and started investing heavily in these companies. Shares of companies like Ebay and Amazon soared, and more investors looked to cash in.
Background2● As in any bubble, people got carried away. Money started chasing any company that was even remotely attached to the Internet. Companies who had never earned a dime of money were suddenly worth billions of dollars. As crazy as it sounds, companies were actually punished if they made money. The companies that were losing money
What is the DotCom Bubble?● In the late 1990s, the United States took place at the center of the market, the Internet bubble (Internet Bubble), and the IT bubble is an unusual storm surge of equity investments and real demand Internet-related companies.
Global impact● Direct investment of IT-related companies in Ireland is a small country successive wage costs were lower in the English-speaking world, even among European countries, Ireland has achieved economic growth, called a "miracle" Celtic riding in this boom.
Impact in Japan● Softbank and Yahoo! JAPAN, Rakuten and CyberAgent, Livedoor (such as on-the-edge) has flourished as Internet companies. Investment trust products were advertised and to invest in U.S. tech stocks were also composition.
Impact of this bubble in the financial sector● Investors poured money into internet startups during the 1990s in the hope that those companies would one day become profitable, and many investors and venture capitalists abandoned a cautious approach for fear of not being able to cash in on the growing use of the internet.
Summary● Looking back on it, the "dot-com bubble" seems so ridiculous - how could investors get so caught up in the moment? The truth is that many investors, large and small, got caught up in the mania. If your neighbor was making six figures in a month trading Internet stocks, wouldnt you want to get involved in the madness as well? Thats just how bubbles work - when you are in the middle of a bubble, you cant see the forest for the trees.
References● Wiki http://en.wikipedia.org/wiki/Dot-com_bubble● Dave manuel http://www.davemanuel.com/investor-dictionary/dot● What was the DotCom bubble? http://www.wisegeek.com/what-was-the-dot-com-bu