Tuesday, October 10, 2006

BOOM! BAM! then...... WHAM.

Where are all these loud explosions coming from? North Korea.... maybe. But more likely they're coming from the year 2000 in a time portal named Google. The YouTube aquisition has caught the attention of many people and in every article I have read, they have payed homage to the 2000 bust, just as I have started this blogg. But is it really all going to be the same thing over again? I think not.

I admit, it is scary seeing Google buy an internet website that doesn't make any money. But I'm going to break the cardinal rule and just say it right now:

It's going to be different this time.

But "why" you may ask. The reason is that Google has acutally figured out a viable way to lots and lots of money. If it is a bubble, at least it has backbone and is made out of unpoppable materiel this time.
I believe that Google will be able to place their AdWord technology with YouTube content to increase their revenue. Simple. And it has already proven to work. As well, Google had 9BILLION dollars in cash. Now, they have 7.5BILLION dollars in cash. Not investor money, not a loan, CASH. But they are paying the YOUTUBE guys in stock. Someone thinks Google's stock is undervalued/prebubble....... just make sure you get out in time.
Whatever.
The whole point of this rambling is that I think this single aquisition is great considering the circumstances. But if this trend were to pick up like it did before 2000, that would be bad.

I think irresponsible investors have learned their lesson. I hope.

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