What Could Have Prevented The Dot-Com Bubble?

A much overdue modern operating-system for humanity.

Modern-day principles of freedom applied to finance would have prevented the dot-com bubble.

What most people refer to as a dot-com bubble was not. That bubble was just another finance bubble, this time applied to innovation rather than to real-estate a few years before. The cause was identical, an arbitrage of innovation – called venture capital – investing increasingly using excessive collusion, deal fragmentation, and deal syndication as the impetus of turning the investment thesis of innovation subprime (uniform). Practices bound to harm the public, the SEC should have picked up on years ago and still has done nothing about it.

In Einstein’s words:

The thesis determines what can be discovered.

And when the thesis of arbitrage is allowed to turn subprime, so does the intake of assets it aims to finance.

What can prevent us from another debacle is to subjugate finance to the same fundamentals marketplaces must be subjugated to. Meaning, venture capital must obey the strict principles of a meritocracy (more than a buzzword) of evolutionary value guarded by freedom’s paradox — freedom guided by new rules designed to strengthen the evolution of humanity.

Quite the opposite to the vile-maxim of personal interests that take our collective interests for a greater-fool ride. The mess caused by venture capital is precisely what put me (as a former part-time venture partner) on a trajectory to reinvent the operating-systems for humanity. Because venture capital, as we have seen from the recurring bubbles in other financial instruments, is not the only segment that suffers from oligarchic freedoms that conflict with and weaken the exploration of human evolution.

 

Join Georges October 27-29 in London, at the 2021 Climate Change Forum.

Let’s lead the world by example with new rigors of excellence we first and successfully apply to ourselves.

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