Setting Back Technological Innovation

One of the most significant consequences of the bubble was that in the rush for riches, many entrepreneurs were bypassed for funding who would have done a better job than those who were funded.

One significant example involves the laying of fiber optic cable under the oceans of the world. Global Crossing, a firm created by Gary Winnick, a Wall Street insider and a former associate of Michael Milkin, the junk bond king, crowded out firms with greater capability and promise. In the mid-1990s, as a need for more bandwidth to carry the Internet became evident, he hatched a scheme to lay fiber optic cable under the world's oceans. He had no experience in anything like this, but Wall Street quickly financed his ...

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