Buy, Lie, and Sell High: How Investors Lost Out on Enron and the Internet Bubble

Do We Want Another Bubble?

Many people think the bubble was a good thing. Among the venture capitalists and investment bankers who made money during the bubble, the view is common that the bubble was a great thing; what's bad is the postbubble. The party was great; what's bad is the hangover.

There are also people who believe that there was net value creation in the bubble, and they point to the continuing positive valuation of a few remaining Internet firms at more money than was invested in all the Internet firms by venture capitalists and angels. But of course the public invested also, in IPOs, and when total capital invested is counted, there is less certainty of any actual value creation.

Regardless of whether or not there was, by the measure ...