Magazine article Real Estate Issues

Editor's Statement

Magazine article Real Estate Issues

Editor's Statement

Article excerpt

Richard Marchitelli

The bravado of the dot.com world is aptly captured by the advertising slogan of deal.com: "Industries collide. Billions change hands. New world orders emerge." At the same time, a discernible loss of swagger is illustrated by the television commercial of SAP Corporation that aired during the recent Major League playoffs. The commercial depicts a maintenance man, razor blade in hand, scratching off the name of a dot.com company painted on the glass entrance door to a suite of empty offices. That message, and more importantly, the recent message of the stock market are unmistakably clear: the world has rediscovered Economics 101 as the New Old Economy meets the Old New Economy. Once again, companies are expected to make money and dysfunctional, unprofitable corporations are expected to wither and die.

The October 16, 2000, edition of The Wall Street Journal expanded on this theme in a front-page article titled, "Reality Check; Here Are Six Myths That Drive the Boom In Technology Stocks." This article carefully and thoughtfully dissected the arguments of the techno-bulls. The irony is that the speciousness of those arguments is so blatantly apparent like "prospects are than earnings" or "tech companies aren't subject to ordinary economic forces, such as a slower economy or rising interest rates." My personal favorite is "this time, things are different."

I am not forecasting the imminent collapse of the dot. …

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