As if on cue, an article hit the screen today foretelling the bubble bursting…and as if responding to my post from yesterday, the author called for a pop of the Web 2.0 bubble.
I am sticking by my optimistic guns and hoping that he is just a hater and that the frenzy going on at the cross ways of media and technology will continue to boom and generate innovation and valuable new ideas. But the idea that cycles exist is surely coming back into the zeitgeist as the credit and real estate markets wake up from the greatest fiesta in history with the beginnings of an equally epic hangover.
That the party is over for many who were riding short boards along the wave of liquidity is becoming more apparent daily as banks are starting to openly claim that they are pulling back their previously generous open arms: Bank warns hedge funds of liquidity crunch
And other blue chip hedge funds are now publicly taking huge hits Tudor Raptor Fell 9% in July; Caxton’s Global Lost 3%
Although this is likely only the cresendo of the coming climax, sometimes people mistake the hillside for a mountain top, and maybe if we concentrate hard enough we can make it true.