Venture Capital Bubble Set to Burst, Kedrosky Says

WE HAVE A FORWARD PRICE/EARNINGS RATIO OF OVER 120, BASED ON THE NEGATIVE EARNINGS OF THE SP500........ A VALUE MARKET IS A P/E OF 10 TO 12, SO THIS MARKET IS SO OVERPRICED ITS NOT EVEN FUNNY !! THE STOCK MARKET IS A "HOUSE OF CARDS", READY TO COLLAPSE....besides, the above, our governments, federal, state, county and city, are all spending tax money that they don't have......so the private sector is broke. negative payroll "earnings", lost home equity,benefits, and no tax relief.....in sight. This market is a bigger bubble waiting to burst !!

Electronics is a mature industry. This means that there is less and less innovation and fewer new, lucrative products and services being invented. The aircraft industry is a good example of what electronics will be a few decades from now.

BUY GUNS, AMMO AND A LOT OF WATER!! THE REVOLUTION IS AROUND THE CORNER........

Bad news!

It took this crash for me to see just how fake the market really is.

U think the gov't and wall street have come up with this master strategy to get private investment into the market? they aren't that smart. they are frantically patching holes and putting out fires with little direction. we aren't victims of strategy and manipulation, just victims of ineptitude and desperation.

how many more bubbles are there left to burst.....it seems a never ending saga....

Hell no, not gonna shed tears for the VC industry.

that's actually very interesting. I hadn't thought about VC investments turning into funds- not sure why as everything else is funded. But anyhow- interesting that these 1999 (ten year investments) are gonna come negative. An 8 year old aftershock from the dot.com bubble burst.

Haha open table IPO. Please. That's like being excited about humidity.

As an encore can I see Paul K self-combust?

This is actually good news for retail investors. Once these big pension funds get back the money they initially invested (albeit, at a loss), they will not be looking to invest in VC funds in the future! What to do with that cash? Pretty simple, buy common stocks in companies that you know are solid. Need a list? Proctor & Gamble, McDonald's, Coca-Cola, Pepsico, Walmart, YUM Brands. These companies all have solid balance sheets and their business models are sound. And, as Warren Buffett says, they have wide moats...meaning, it's hard for any start-up to try to compete with them. Just buy the blue chips that have (1) no debt (2) solid earnings (3) increased dividend payouts (4) wide moats.

As long as u have your toy bubble blower & supply of bubble soap--Keep blowing.When your bubble soap runs out,try liquid dish soap.When that runs out--OH-Oh--no more bubbles to burst.

It's easy to want to take VCs down a notch but VC backed companies create a lot of jobs. There are over 10,000 jobs at VC backed companies at www.startuphire.com.

Global venture capital fund enjoyed good time in the 7 years econmic boom, without products and marketing innovation. Now facing more than 50 % plunge in investgment due to falling demand and prices as Dow Jones, NASDAQ shrinkmore than 50 %, Fro my 30 years development, implementation of innovative, product and profit added venture capital innovation, risk management is the only way survive in recession. details in www.osawh.com/venceo.html

I agree with storm. House of cards indeed and the DOW P/E is unfuckingbelievable. No way can they keep this market up but what do I know. I am betting they cannot though and hope it dumps cause I got lots of FAZ and want to buy more stock at those March lows again. So a nice dump, I win on FAZ, and then buy low. That's the plan for better or worse. If it works out don't worry I will be happy to gloat later but until then I watch and wait at the mercy of the market manipulators.

Who's this character, Kedrosky? What does he know? Where are the specifics, give us the details. He's what Wall street is made-up of. People that make BS a way of living. I don't trust Wall street either but we still play the game. Too many wall street BS'rs, they want to take your money.

"Friday on the New York Stock Exchange, where volume came to a light 858 million shares" That's today folks and volume has been getting lighter all the time. This is just another indicator as to how fragile this market is so be wary of buying at today's highs.

The DOW P/E is 50!!!! The 100 year average is 17, and that's with 7% growth after inflation. You do the math, it's elementary my dear Watson.

P/E is PU right now. Simple e-nuff? Volume at all time lows, no foundation, yet DOW continues to rise. I hate thinking conspiricy but it's hard not to these days. It just has to dump again otherwise nothing is real anymore.