New York, Julia, Two Thousand discussed on This Day In Esoteric Political History
It doesn't turn into business so i think we've effectively thrown the sock puppet under the bus and i think we've painted a picture of You know the mismanagement within pets.com. But i do also think the the real lesson here and the real story here is about as you explore julian. You're serious you know the larger bubble and the people who were willfully inflating it kind of knowing that it was a bubble in pets.com. I think was in many ways just willing to go along for the ride so start to paint that picture especially for people. Who are you know alive at. The time are aware at the time you know what exactly it was to have that first. Internet fervor bubble. And who was artificially. Inflating it yeah. I think it's hard for anyone to really picture what it was like. Because we are We're are are are bending differently because of our phones but like it was as if the internet was going to make every thing a massive business so like when you used to have a business you would sell to the people who were physically near you and the internet. All of a sudden was going to make it possible for you to sell to like the whole world and that amount of potential. I think it cannot be understated and pets.com was there for a really particular moment They were not alone. There were a lot of other companies who all of a sudden. We're like okay. Let's do this to everyone every it's all going to be possible but not everybody had the internet. It wasn't that fast. It took like sixty seconds for a webpage to load. It was still so new that like people were skeptical of putting their credit cards online. There was a lot that felt a little bit uncertain about the internet and its potential but pets.com and the economy at large wasn't wrong about the potential ultimately fundamentally here we are you know when i think there's also a some blame to placed on financial institutions who were helping to rapidly inflate this bubble so an institution like merrill lynch is continuing to find and keep afloat pets.com long after it made sense because they were collecting all of these investment banking fees. And so. here's this little mini lesson from one thousand nine hundred ninety two thousand two thousand one where you learn about. All these shady finance and investment practices inflating a huge bubble and watching that bubble pop and fast forward six years and everyone has learned their lessons and nothing bad has happened. Yeah exactly. I think it's important to shout out like there was a huge scandal surrounding now somebody who people would think is a media person but then he was an analyst named henry blodget if you turned on the tv in a bar in new york in two thousand two thousand and one. It was totally possible that you would be watching. Cnbc and they were. They made a choice to cover. The stock market like it was football and so you would see analysts becoming stars. there's a punk. Rock song featuring maria barreda romo because joey ramone washed cnbc so it was a time when there was a lot of hot air pumping this bubble and it was getting bigger on purpose and there were a lot of practices that made it so that it was in the financial interest and not necessarily the ethical interest of these big banks to take companies public. And of course nikki deer point him. You know in two thousand and eight. We see so. Many similar dynamics of jim cramer kind of pumping stocks for much longer than he actually should and we have You know people double-dealing invested in various ways that cut against each other So you know as we start to wrap up. I guess that's julia one of the things. I'm curious where where you're at in terms of you know what lessons are. They're both in terms of bubbles. But also this question. I've been thinking a lot about in this year. In two thousand twenty and you know what counts is basically the third half of two thousand twenty minute but you know Like this disconnect between the stock market and the economy and this was a year in which obviously gotta stop crash but then quickly just rose and you know the the stat you hear about billionaires. Make more money than ever this year. and and some people are like jumping into the stock market and playing it. Like it's a game or other. People are standing inbred lines. Where where's your head. And what lessons from one thousand nine hundred nine about that. Seemingly fundamental disconnect. I mean i think you just said it very perfectly but like if it feels wrong it probably is like if it feels like something is too good to be true or if the economy is doing something that seems a little bit weird it probably is weird. I spoke to an economist named ron through har- who basically laid out the fact that right before the pandemic hit many of the tech companies that we are now relying on. Were really getting a little bit wobbly here. In terms of their valuations you saw like absolutely skyrocketing valuations. You know we work as an emblem of this where it had a less than ideal ipo situation. I mean it's very complicated. But in a basic way but then the pandemic hit and the economy went entirely digital and it really transformed a lot of things that i think. We're going to still see in the next months and years the there obviously we'll see the reverberations and you know you couldn't have planned for that. But i think that if there's a lesson to be learned it's that like planning his fake. You don't know what's coming and if it feels weird there's a reason for that. It's because it's weird and it's not. Okay probably yeah. I would add just a couple of lessons to that. One friend of mine said on twitter that the stock is the mood ring of the plutocracy. And that i think is a pretty good description of what it is and it is not the economy and the disjuncture between the two of those are confusion about the two of those things. has led us down a a very bad path on more than one occasion. Yup and i would also say like banks don't learn you've got us set rules so that they don't continue to chase just like the most profitable venture because we've been through so many bubbles in the past several years and we keep rolling back those regulations. Just they come back and make more money and it seems like really bad idea because it always ends in the same place so those are at least two lessons. That you can scrape from the pets.com buckle. Yeah i would add only one more or less than which is like maybe learn your history that maybe you listen to really good podcast. You can maybe not do the same thing that you already did. Contribute to the podcast bubble. Exactly yeah talking about man you know i will ride this one But you know in the political dimension here too. I mean we're you know we're coming off of a presidency in a president who was obsessed with the stock market willfully ignorant of the difference between the economy and the stock market and that is incredibly dangerous as well. but like we were imploded. Some other places like airbnb had this massive. Ipo just a couple of months ago and those keep happening and be very curious to see Which is to say. I think you're going to have plenty of future seasons. Fortunately i will. I will be here writing these wild moments when people really like lose the plot and you know i hope it doesn't happen again but it probably will probably the series is go for broke. Its podcast from. Vox and julia for lawn is the host. So thank you for doing this. Thank you so much. I really appreciate you and nicole hammer. Thanks to.