John H. Vogel Jr., a real estate expert at the Tuck School of Business at Dartmouth, offers some insight into how the technology boom of the late 1990s helped set the stage for the current financial crisis.
Vogel, via a video on Beet.TV, explains that financial speculators dumped stocks in favor of real estate. This action, when combined with banks creating exotic financial instruments to profit from real estate, led to the current crisis. Both the Tuck School of Business at Dartmouth and The Deal LLC are public relations clients of Plesser Holland, whose founder Andy Plesser started Beet.TV. - Matthew Wurtzel
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This guy doesn't make any sense.
1. The dotcom bomb was caused by a credit pullback? really what pullback? I thought it was based on dot com companies that had raised millions of dollars but couldn't develop a probfitable business model. WebAdvertising was before its time, the vc's woke up and decided they didn't want to keep funding pipedreams.
2. He wonders why the Real Estate market went south?
Are you kidding me, is this guy really a professor? The answer greed. Financial companies needed their next cash machine so they created finanical tools that generated even more wealth than the pre dot com days. However, it too was based on an unsustainable economic model.
c'mon professor, tech didn't cause the real estate blow up, Greed did. Tech was just the one before realestate, which was after the savings and loan crisis, which was after the energy crisis and so on and so on.