The Internet BROKE The Stock Market?!

Minisode #12: Monetarist Economics How Did We Not Know That

Everybody has an opinion! In another episode of the Econ With Jac series, Jac covers Monetarist Economics: a direct criticism of Keynesian Economics. Tweet us @HDWNKT with your thoughts on an Econ With Jac mini-series! Check out FSO Compass here: https://fsocompass.com/hdwnkt Help us improve the quality of our podcast by contributing to our Patreon: https://www.patreon.com/HowDidWeNotKnowThat — Support this podcast: https://anchor.fm/hdwnkt/support
  1. Minisode #12: Monetarist Economics
  2. Why Are Israel And Palestine Fighting?
  3. Minisode #11: Realism
  4. Who Shot Bob Marley?
  5. Minisode #10: Keynesian Economics

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Show Notes

With the rise of the internet companies in the mid 90’s everyone was eager jump on the bandwagon of investments in the hopes of gaining riches. Hear Jac explain the dot com bubble, who lost it all, and who got rich after the pop!

Sources:

http://hnn.us/article/173359

https://www.investopedia.com/terms/d/dotcom-bubble.asp

https://time.com/3741681/2000-dotcom-stock-bust/

https://www.theatlantic.com/ideas/archive/2019/10/are-we-cusp-next-dot-com-bubble/600232/

https://time.com/3741681/2000-dotcom-stock-bust/

https://www.history.com/news/who-invented-the-internet#:~:text=The%20first%20workable%20prototype%20of,communicate%20on%20a%20single%20network.

https://home.cern/science/computing/birth-web#:~:text=Tim%20Berners%2DLee%2C%20a%20British,and%20institutes%20around%20the%20world.

Transcript

0:00:00.030,0:00:03.600
hello everybody and welcome back to

0:00:01.740,0:00:08.280
another episode of how did we not know

0:00:03.600,0:00:11.759
that I’m Matt I’m Jack and today jack is

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gonna talk about something related to

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the Internet all right so now have you

0:00:16.740,0:00:23.970
heard of the dot-com bubble yeah I have

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but I really could not tell you what it

0:00:23.970,0:00:29.279
was that’s okay do you kind of know like

0:00:26.609,0:00:31.679
where what time frame it was I guess

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like it’s the emergence of calm so that

0:00:31.679,0:00:41.160
could give something yeah late 90s

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yes yes yeah mid to late 90s was like

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mid 90s but yeah it’s basically we’ll

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see how long this episode actually goes

0:00:46.440,0:00:51.449
because it’s kind of self-explanatory

0:00:48.239,0:00:53.370
there was a dot-com bubble which a

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bubble is a stock market term which I

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will explain later but basically all of

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these companies were emerging and a lot

0:00:58.649,0:01:02.219
of people were investing in these

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companies because they had that buzzword

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of internet in them and eventually those

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companies started to fail because

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everything was over evaluated and we had

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a market crash so I’m just gonna kind of

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try to explain how that bubble emerged

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why it crashed and then how there are

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some parallels to companies that we see

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today as well

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interesting all right I’m excited yeah

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so I’m going to start out by asking you

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what is the Internet and how does it

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work

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oh my god morning questions to start

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your day

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oh boy okay this is probably like such a

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easy question what is the internet on

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the Internet is the world of idle and

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how does it work I really you’re totally

0:02:00.680,0:02:05.960
fine I was I think two years into my

0:02:03.500,0:02:07.940
computer science degree and I would

0:02:05.960,0:02:10.550
still be like yeah how does the internet

0:02:07.940,0:02:12.440
work how like what is that so don’t even

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worry about it it’s not common knowledge

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to just process how technology came

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about but I will give you a brief lesson

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so the internet was actually it wasn’t

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created by one specific person it’s

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created with the collaboration of a

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dozen different scientists programmers

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and engineers who worked to develop

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smaller technologies which then came

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together to form the Internet the first

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workable prototype of the Internet came

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in October of 1969 with the creation of

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ARPANET and ARPANET stands for the

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Advanced Research Projects Agency

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network and that was a like network that

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was funded by the United States

0:02:51.709,0:02:59.030
Department of Defense so a fun fact is

0:02:55.580,0:03:00.200
actually our armies and our militaries

0:02:59.030,0:03:01.790
and our Department of Defense will

0:03:00.200,0:03:04.790
always have the most up-to-date

0:03:01.790,0:03:06.620
technology because that’s most of the

0:03:04.790,0:03:08.989
technology that we develop as you saw

0:03:06.620,0:03:10.970
with the space race comes out of a need

0:03:08.989,0:03:13.820
to defend yourselves which is

0:03:10.970,0:03:14.780
unfortunate but it’s true that really if

0:03:13.820,0:03:16.250
you feel like you’re going to die

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without this technology it really

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motivates you to start working yeah

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they’ll always have the newest and

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shiniest of technology in there and I

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remember during one of my internships I

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had a manager who was a little older

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than us and she talked about what it was

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like to have the first personal computer

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in the 80s because the military people

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had it first so she got to be a part of

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that test wave oh good so yeah it’s

0:03:44.420,0:03:47.780
really cool so if you

0:03:45.680,0:03:52.879
or interested in tech maybe join the

0:03:47.780,0:03:55.579
military do some surgery oh yeah so then

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the Internet in layman’s terms is

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basically just a large network of nodes

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so a nodule is just like one point right

0:04:01.970,0:04:06.650
and an odd good a node could be a

0:04:04.010,0:04:08.659
computer or a phone anything that’s

0:04:06.650,0:04:11.030
connected to the Internet it’s a node so

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that all connects to each other and

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that’s what we form the internet through

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okay yeah if you get lost just let me

0:04:17.359,0:04:21.919
know and I’ll try to explain it again

0:04:18.680,0:04:24.080
but the yeah it’s just each node is

0:04:21.919,0:04:26.389
talking to each other that’s it so like

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I’ll send you data and you send me data

0:04:26.389,0:04:30.289
back and that’s it and it’s just a bunch

0:04:28.220,0:04:33.919
of these little nodes sending data to

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each other okay yeah and that whole

0:04:33.919,0:04:40.340
network is called the internet gotcha

0:04:36.710,0:04:44.660
okay yeah so it’s just a huge exchange

0:04:40.340,0:04:46.789
of data and in 1969 ARPANET delivered

0:04:44.660,0:04:48.710
its first message which was node to node

0:04:46.789,0:04:52.070
communication from one computer to

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another which was at the time personal

0:04:52.070,0:04:57.800
computers didn’t arise till the 1980s so

0:04:55.490,0:05:03.710
in 1969 computers are still about the

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size of a small house oh yeah so the

0:05:03.710,0:05:07.820
first two computer will not the first

0:05:05.449,0:05:10.699
two computers but the computers that did

0:05:07.820,0:05:14.000
the first like internet connection were

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based in a research lab in UCLA and then

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another research lab at Stanford and the

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message was just one word it was login

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and even that message was a bit too long

0:05:23.479,0:05:29.419
they only got the first two letters of

0:05:25.639,0:05:32.510
that so ello but that counts great oh my

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gosh yeah so the world wide web was

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actually started in 1989 and that was

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invented by Tim berners-lee and it was

0:05:37.550,0:05:41.690
just made for scientists in universities

0:05:39.830,0:05:43.130
and institutions around the world the

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world wide web is actually just the most

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popular platform for accessing data and

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information sharing through hyperlinks

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and browsers but yeah the there are a

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few different transfer protocol servers

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that existed before that limit losing

0:05:57.139,0:06:03.229
you I do think that’s like sick

0:05:59.330,0:06:05.240
ah okay cool cool hey yeah and a

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Transfer Protocol is just if we’re gonna

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transfer something and we follow a

0:06:07.759,0:06:12.349
protocol a set of rules so that’s how

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we’re gonna exchange data is this

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Transfer Protocol so the so that’s like

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how you exchange data between the nodes

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or like all the computers from just

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exactly they have to follow a specific

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protocol is it like when you say like a

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specific protocol is it almost like like

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I’m like trying to relate it like to

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coding is it like the same like language

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or like is that I might complete the ER

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yeah so you’re yeah you’re getting that

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there’s like yeah it is the same

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language you can use different languages

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it’s more in regards to I hope I’m doing

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this right this is like I’m pulling from

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my networks class that I took junior

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year it there transfer protocols that

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regard how you switch packets and

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packets are like your piece of data so

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when we if we let’s say we’re both

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trying to send an email to the same

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person and we follow a specific transfer

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protocol so it’s whoever sent the

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message first that one is going to get

0:07:07.490,0:07:12.229
delivered before my message whereas if

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we sent them at the same time what

0:07:12.229,0:07:16.039
happens when we both send it at the same

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time then like is it gonna be a block do

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this is the person receiving it not get

0:07:17.659,0:07:23.389
any like who gets to send their message

0:07:20.120,0:07:24.949
first oh yeah so that’s like transfer

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protocols is like the rules that you’re

0:07:24.949,0:07:30.199
gonna follow when you send data okay

0:07:27.590,0:07:32.979
that make sense yeah yeah I hope I’m

0:07:30.199,0:07:35.629
doing this right if any like no I just

0:07:32.979,0:07:39.080
people like come for me it’s just like

0:07:35.629,0:07:43.129
email or tweet us I will change what I’m

0:07:39.080,0:07:47.029
saying if it’s not exactly correct no no

0:07:43.129,0:07:47.770
you’re doing agree at least it sounds

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smart

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okay so now we’re gonna actually get

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into the dot-com bubble so the Internet

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is a really new cool thing the dot-com

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bubble actually lasted from 1995 to 2001

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in April 30th 1993 the web became public

0:08:03.199,0:08:08.000
domain which means everybody could use

0:08:05.029,0:08:11.029
it now because before it was just mainly

0:08:08.000,0:08:12.830
for scientists and PhDs and university

0:08:11.029,0:08:14.120
people to exchange data

0:08:12.830,0:08:16.460
but now they’re like let’s give it to

0:08:14.120,0:08:19.310
everyone so with the web becoming public

0:08:16.460,0:08:21.319
domain we start to see a rise in online

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internet based companies which are dub

0:08:21.319,0:08:27.050
comm SOCOM is just a domain name like

0:08:25.490,0:08:29.840
when you have google.com and

0:08:27.050,0:08:32.870
facebook.com that’s just your domain but

0:08:29.840,0:08:37.219
you could have like da IO org those are

0:08:32.870,0:08:39.110
all just different domain names so then

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now we’re gonna explain what a bubble is

0:08:39.110,0:08:45.500
so we could do a whole nother episode on

0:08:43.010,0:08:48.110
how the stock market works but too

0:08:45.500,0:08:50.390
briefly if you want that please tweet us

0:08:48.110,0:08:53.890
or email us and we can go into it but

0:08:50.390,0:08:56.149
the stock market just as like piece of

0:08:53.890,0:08:57.649
advice to like anyone who doesn’t really

0:08:56.149,0:08:59.270
know how the stock market works it’s not

0:08:57.649,0:09:01.820
actually a direct reflection on how the

0:08:59.270,0:09:05.300
economy’s doing so the stock market is

0:09:01.820,0:09:07.250
basically just how we as a society are

0:09:05.300,0:09:09.800
perceiving the valuation of certain

0:09:07.250,0:09:11.870
companies so with the stock market not

0:09:09.800,0:09:14.420
actually being a direct reflection of

0:09:11.870,0:09:17.839
how the economy is doing each company

0:09:14.420,0:09:20.450
stock is also not a direct reflection on

0:09:17.839,0:09:22.730
how that company is doing it is just the

0:09:20.450,0:09:24.890
perceived value that we as consumers are

0:09:22.730,0:09:27.050
placing on it so if you think a company

0:09:24.890,0:09:29.420
is gonna do really well and everyone’s

0:09:27.050,0:09:31.100
buying into this company the valuation

0:09:29.420,0:09:34.360
is going to go up that doesn’t mean that

0:09:31.100,0:09:39.980
the company is actually doing well yeah

0:09:34.360,0:09:42.290
so a bubble emerges then when investor

0:09:39.980,0:09:44.600
valuation of an industry or company is

0:09:42.290,0:09:49.160
greater than the actual value of that

0:09:44.600,0:09:50.899
company okay right so hence the dot-com

0:09:49.160,0:09:53.180
bubble also known as the internet bubble

0:09:50.899,0:09:55.610
was the rapid rise in US technology

0:09:53.180,0:09:57.740
stock equity evaluations fueled by

0:09:55.610,0:10:00.680
investments in internet-based companies

0:09:57.740,0:10:02.510
and we knew that this was a bubble when

0:10:00.680,0:10:04.040
it was happening at the time because a

0:10:02.510,0:10:05.720
lot of the companies who are going to

0:10:04.040,0:10:07.490
market with their IPOs

0:10:05.720,0:10:11.060
which an IPO is an initial public

0:10:07.490,0:10:13.520
offering when you as a company go public

0:10:11.060,0:10:15.709
that means that you’re opening up your

0:10:13.520,0:10:19.490
stocks of the company to be bought by

0:10:15.709,0:10:22.520
individual investors like us and your

0:10:19.490,0:10:25.100
IPO is that valuation that you get once

0:10:22.520,0:10:26.270
it reaches the stock market and so with

0:10:25.100,0:10:29.240
a lot of these companies that were

0:10:26.270,0:10:31.670
to the IPO they had huge valuations

0:10:29.240,0:10:33.260
within the first day which doesn’t make

0:10:31.670,0:10:35.990
sense for a company that’s just now

0:10:33.260,0:10:37.550
emerging in the market yeah yeah

0:10:35.990,0:10:41.779
sometimes they would double on the first

0:10:37.550,0:10:45.380
day which is just wow not it’s a lot of

0:10:41.779,0:10:47.360
growth for 24 hours yeah yeah right so

0:10:45.380,0:10:48.440
obviously we ran into a lot of problems

0:10:47.360,0:10:50.870
tons of companies

0:10:48.440,0:10:52.209
we’re emerging with no rational business

0:10:50.870,0:10:55.399
plans for short-term or long-term

0:10:52.209,0:10:56.630
survival venture capitalists which are

0:10:55.399,0:10:58.310
if you don’t know what venture

0:10:56.630,0:11:00.680
capitalists are they’re just early stage

0:10:58.310,0:11:02.450
investors so if you’re specifically a

0:11:00.680,0:11:04.550
venture capitalist you like to invest in

0:11:02.450,0:11:08.180
startups which are companies that are

0:11:04.550,0:11:10.279
really really brand new but all of these

0:11:08.180,0:11:12.680
types of investors were really scared

0:11:10.279,0:11:15.560
about missing on missing out on the

0:11:12.680,0:11:17.690
growth that they were just pouring tons

0:11:15.560,0:11:21.140
of money into any company that said they

0:11:17.690,0:11:23.540
were internet base yeah well yeah I mean

0:11:21.140,0:11:26.330
that makes sense because like okay so

0:11:23.540,0:11:29.270
it’s like this new technology like that

0:11:26.330,0:11:31.610
has only been used by academic

0:11:29.270,0:11:33.020
scientists people in the military and so

0:11:31.610,0:11:34.430
for regular people like they don’t

0:11:33.020,0:11:37.339
probably don’t understand the technology

0:11:34.430,0:11:40.100
even in 2020 I so could not tell you

0:11:37.339,0:11:41.990
what the internet was so I’m sure like

0:11:40.100,0:11:44.839
people it’s like lack of understanding

0:11:41.990,0:11:47.510
of the technology and also just like

0:11:44.839,0:11:50.270
this huge revolution like I take it for

0:11:47.510,0:11:51.920
granted because I am like young and I’ve

0:11:50.270,0:11:54.589
had the internet my whole life growing

0:11:51.920,0:11:56.390
up I can’t imagine what it’d be like

0:11:54.589,0:12:00.579
without the internet and suddenly you

0:11:56.390,0:12:03.290
have the whole world’s accumulation of

0:12:00.579,0:12:05.589
entertainment like at your fingertips oh

0:12:03.290,0:12:08.540
I can’t even imagine like how

0:12:05.589,0:12:11.149
revolutionary and life-changing that

0:12:08.540,0:12:13.220
must be and so obviously yeah everyone’s

0:12:11.149,0:12:15.709
freaking on I think the whole lack of

0:12:13.220,0:12:17.870
understanding of what the technology

0:12:15.709,0:12:18.770
behind it probably did really hurt when

0:12:17.870,0:12:21.079
you’re saying like they’re just

0:12:18.770,0:12:23.209
investing money wherever it was like say

0:12:21.079,0:12:27.230
if someone has the word Internet yes

0:12:23.209,0:12:29.600
take my money what you take it make me

0:12:27.230,0:12:31.430
rich so know exactly and I I think

0:12:29.600,0:12:33.829
there’s a really strong parallel to

0:12:31.430,0:12:36.140
cryptocurrency today which we could do a

0:12:33.829,0:12:38.900
whole episode on crypto but a lot of

0:12:36.140,0:12:40.550
people don’t understand it

0:12:38.900,0:12:42.589
or some people I honestly think that

0:12:40.550,0:12:44.210
people overcomplicate crypto and they

0:12:42.589,0:12:46.339
make it this elusive thing so people

0:12:44.210,0:12:48.140
just think that it’s gonna make money

0:12:46.339,0:12:50.300
like I have to get my money into it and

0:12:48.140,0:12:51.920
then they make investments based on just

0:12:50.300,0:12:53.930
that buzzword of crypto instead of

0:12:51.920,0:12:57.140
actually evaluating okay like is this

0:12:53.930,0:12:58.839
crypto currency a kind that I believe in

0:12:57.140,0:13:04.339
do I think it’s gonna be sustainable

0:12:58.839,0:13:05.529
mm-hmm similar things yeah yeah but

0:13:04.339,0:13:08.000
you’re right a lot of the companies

0:13:05.529,0:13:10.910
because they’re getting backed by all

0:13:08.000,0:13:13.070
this money without any business plans

0:13:10.910,0:13:16.210
the idea was just they wanted to grow

0:13:13.070,0:13:19.100
big and grow really fast which isn’t

0:13:16.210,0:13:21.620
necessarily sustainable or practical for

0:13:19.100,0:13:24.020
most companies there’s always gonna be

0:13:21.620,0:13:28.070
like an uptake time and growing your

0:13:24.020,0:13:29.510
company and so eventually when all of

0:13:28.070,0:13:32.270
these companies failed to turn a profit

0:13:29.510,0:13:34.880
people lost their money and this was a

0:13:32.270,0:13:38.510
huge contribution to the 2001 stock

0:13:34.880,0:13:40.700
market crash that happened later on yeah

0:13:38.510,0:13:42.710
and so a lot of people there was a 2001

0:13:40.700,0:13:44.510
crash and a lot of people attributed to

0:13:42.710,0:13:48.110
the terrorist attacks that we had to

0:13:44.510,0:13:49.100
September 11th 2001 and if you’re

0:13:48.110,0:13:50.930
listening in you’re outside of the

0:13:49.100,0:13:53.720
states that was a huge deal in the

0:13:50.930,0:13:55.640
United States because me a very

0:13:53.720,0:13:57.709
significant terrorist attack and that

0:13:55.640,0:13:59.300
people said that the stock market crash

0:13:57.709,0:14:02.540
was related to that too but actually the

0:13:59.300,0:14:04.700
dot-com bubble burst was a potentially

0:14:02.540,0:14:07.700
larger chunk in it just because a lot of

0:14:04.700,0:14:09.529
the I’m gonna try to explain the Nasdaq

0:14:07.700,0:14:12.200
are you familiar with the Naza yeah

0:14:09.529,0:14:14.779
that’s like the collection of like the

0:14:12.200,0:14:18.529
big like a certain types of the big

0:14:14.779,0:14:20.660
companies yeah it’s an index of how the

0:14:18.529,0:14:23.480
stock market’s doing but it’s taken from

0:14:20.660,0:14:25.670
just like a chunk of large companies or

0:14:23.480,0:14:27.589
a lot of companies that make up the

0:14:25.670,0:14:28.910
stock market and they I don’t want to

0:14:27.589,0:14:31.880
say average because I don’t think it’s

0:14:28.910,0:14:34.040
an average but they will like to take

0:14:31.880,0:14:35.720
how those are doing and then figure out

0:14:34.040,0:14:38.209
this index and that indicates how the

0:14:35.720,0:14:40.910
stock market as a heat pole is doing so

0:14:38.209,0:14:43.370
that the dot-com bubble bursting

0:14:40.910,0:14:46.120
actually affected Nasdaq a lot more

0:14:43.370,0:14:49.280
because Nasdaq at the time was really

0:14:46.120,0:14:51.290
heavily dependent on huge tech

0:14:49.280,0:14:52.610
internet-based companies so that was a

0:14:51.290,0:14:56.360
large sector

0:14:52.610,0:14:58.279
yeah okay yeah and subsequently most of

0:14:56.360,0:15:02.180
the internet companies went bankrupt or

0:14:58.279,0:15:04.850
many of them did oh wow yeah so facts

0:15:02.180,0:15:08.000
and figures from the time during the

0:15:04.850,0:15:10.730
bubble kind of building up the Nasdaq

0:15:08.000,0:15:14.390
grew from a thousand points in 1995 to

0:15:10.730,0:15:17.380
over 5,000 points in 2000 with little

0:15:14.390,0:15:21.589
inflation that’s not good

0:15:17.380,0:15:24.380
yeah so then from March to April of 2000

0:15:21.589,0:15:26.300
dot-com stocks had lost nearly 1

0:15:24.380,0:15:29.329
trillion in stock value so that’s just

0:15:26.300,0:15:31.040
one month to lose a tune and stock value

0:15:29.329,0:15:34.029
for like all the companies is still a

0:15:31.040,0:15:37.579
huge deal that’s so much money though

0:15:34.029,0:15:39.920
mm-hmm comprehend that yeah it’s a lot

0:15:37.579,0:15:42.769
and even the blue chip technology

0:15:39.920,0:15:46.610
companies so a blue chip technology

0:15:42.769,0:15:48.980
company is just a really well

0:15:46.610,0:15:51.470
established and safe investment so those

0:15:48.980,0:15:54.170
are big companies like Cisco Intel and

0:15:51.470,0:15:55.850
Oracle so those are supposed to be

0:15:54.170,0:15:57.709
really stable if you put your money

0:15:55.850,0:15:59.779
there they’ve been established those

0:15:57.709,0:16:05.750
still lost more than 80 percent of their

0:15:59.779,0:16:08.779
value upon the bursts 80% mm-hmm that’s

0:16:05.750,0:16:11.000
a lot it was rough and the Nasdaq did

0:16:08.779,0:16:14.630
not recover back to its dot-com peak

0:16:11.000,0:16:17.420
until 2015 and the total number of job

0:16:14.630,0:16:20.870
losses from the dot-com bubble burst was

0:16:17.420,0:16:22.910
400 15,000 which today since we’re at

0:16:20.870,0:16:24.560
like 40 million it doesn’t seem like

0:16:22.910,0:16:29.480
that much but I’m sure at the time it

0:16:24.560,0:16:32.390
was a lot yeah wow that’s insane yeah

0:16:29.480,0:16:35.029
but some companies did survive so can

0:16:32.390,0:16:39.170
you take a guess as to what they were

0:16:35.029,0:16:44.300
think about the biggest most richest

0:16:39.170,0:16:46.089
person that exists today Oh Bill Gates

0:16:44.300,0:16:49.399
Microsoft

0:16:46.089,0:16:51.170
no actually Bill Gates is part of the PC

0:16:49.399,0:16:52.760
era because you know pert he makes

0:16:51.170,0:16:53.890
personal computers rape and that was

0:16:52.760,0:17:00.380
like in the 80s

0:16:53.890,0:17:04.840
thank richer than Bill Gates the lead

0:17:00.380,0:17:07.930
Amazon is you

0:17:04.840,0:17:10.570
Amazon upon their initial IPO trading at

0:17:07.930,0:17:13.560
7:00 at the peak of the dot-com bubble

0:17:10.570,0:17:16.870
they were trading at $100 per share and

0:17:13.560,0:17:20.080
which is a lot but today Amazon trades

0:17:16.870,0:17:24.610
for over two thousand seven dollars oh

0:17:20.080,0:17:26.620
my god yeah crazy in my head on my game

0:17:24.610,0:17:29.260
and what’s not okay for me personally

0:17:26.620,0:17:31.720
Amazon hasn’t become relevant like into

0:17:29.260,0:17:34.450
like the past like five or six years but

0:17:31.720,0:17:35.560
Wow they’ve been oh yeah they’ve been

0:17:34.450,0:17:38.620
here for a while

0:17:35.560,0:17:40.810
that’s he’s been trekking along I think

0:17:38.620,0:17:43.090
two will go into this but some of the

0:17:40.810,0:17:46.080
good things that came out of the dot-com

0:17:43.090,0:17:47.770
bubble were it did inspire a lot of

0:17:46.080,0:17:50.320
entrepreneurship because it’s like this

0:17:47.770,0:17:52.660
new technology it’s really when you

0:17:50.320,0:17:53.950
start internet-based companies they

0:17:52.660,0:17:57.040
still talk about this all the time like

0:17:53.950,0:17:59.200
e-commerce but doing that you can really

0:17:57.040,0:18:01.090
there’s not a ton of like money that you

0:17:59.200,0:18:02.980
have to put into upfront to start those

0:18:01.090,0:18:05.500
company so everyone likes to jump on

0:18:02.980,0:18:07.690
that and that type of entrepreneurship

0:18:05.500,0:18:11.530
hadn’t really been seen since before the

0:18:07.690,0:18:13.780
Great Depression so oh and in spired a

0:18:11.530,0:18:16.930
lot of new young entrepreneurs so much

0:18:13.780,0:18:20.320
so but that by the spring of 1999 there

0:18:16.930,0:18:23.260
was a survey done by Vanguard and it

0:18:20.320,0:18:26.920
said that one in 12 Americans were in

0:18:23.260,0:18:29.860
some stage of a founding business oh my

0:18:26.920,0:18:31.690
god really yeah like involved in some

0:18:29.860,0:18:32.830
way whether they’re an investor whether

0:18:31.690,0:18:35.290
they’re trying to build their own

0:18:32.830,0:18:37.000
weather they were like doing marketing

0:18:35.290,0:18:40.540
for one you just like you have your hand

0:18:37.000,0:18:45.210
in something yeah and then I have a cute

0:18:40.540,0:18:47.800
video a cute video that CNBC posted from

0:18:45.210,0:18:50.140
interviewing Jeff Bezos during the

0:18:47.800,0:18:51.940
dot-com bubble era and I’ll send it to

0:18:50.140,0:18:55.030
you after this we can also link it in

0:18:51.940,0:18:56.680
our show notes or check it out it’ll be

0:18:55.030,0:18:59.920
like in the description and on our

0:18:56.680,0:19:04.120
youtube video prepared too oh yeah I’ll

0:18:59.920,0:19:05.680
tweet it as well I really admired it I

0:19:04.120,0:19:09.010
know that Jeff Bezos is a very

0:19:05.680,0:19:12.280
polarizing character these days but I I

0:19:09.010,0:19:14.680
think this is also my two cents as just

0:19:12.280,0:19:17.600
like a college student in stem but even

0:19:14.680,0:19:19.820
the interviewer in it talks about

0:19:17.600,0:19:22.190
oh but like your you have to put money

0:19:19.820,0:19:25.220
into your company to make it run that’s

0:19:22.190,0:19:26.690
a lot of cost and the Internet this and

0:19:25.220,0:19:28.549
the Internet VAT and Jeff Bezos

0:19:26.690,0:19:31.130
literally says like Internet shouldn’t

0:19:28.549,0:19:32.929
turn that at one point in the video but

0:19:31.130,0:19:35.390
he was like the point of a company is

0:19:32.929,0:19:37.760
that you’re making like a good service

0:19:35.390,0:19:39.320
for consumers and that’s how you have a

0:19:37.760,0:19:41.360
good company so he’s like maybe the

0:19:39.320,0:19:43.100
Internet’s a part of that but at the end

0:19:41.360,0:19:45.320
of the day it’s about good customer

0:19:43.100,0:19:47.150
service being like an engineer in

0:19:45.320,0:19:49.700
Silicon Valley right now I really like

0:19:47.150,0:19:51.350
seeing that because even today a lot of

0:19:49.700,0:19:53.090
people want to follow the hype but at

0:19:51.350,0:19:56.000
the end of the day businesses that work

0:19:53.090,0:19:57.530
don’t have to be followed by the

0:19:56.000,0:19:59.179
internet or have to have like the most

0:19:57.530,0:20:00.710
emerging technology so you see all the

0:19:59.179,0:20:03.169
different types of businesses on Shark

0:20:00.710,0:20:04.730
Tank that get distributed you know

0:20:03.169,0:20:06.440
making a good product is making a good

0:20:04.730,0:20:09.380
product and you’re solving a problem and

0:20:06.440,0:20:11.809
that’s ultimately the types of companies

0:20:09.380,0:20:13.340
that I think will succeed ya know that’s

0:20:11.809,0:20:15.169
a good point it’s like it’s all about

0:20:13.340,0:20:17.120
the foundation of the company it doesn’t

0:20:15.169,0:20:19.880
matter how many flashy words you have

0:20:17.120,0:20:22.250
like yeah there has to be a good balance

0:20:19.880,0:20:23.630
between like technology but it’s not

0:20:22.250,0:20:24.880
gonna succeed unless you have a good

0:20:23.630,0:20:27.409
business

0:20:24.880,0:20:29.270
the big takeaway from that is that

0:20:27.409,0:20:30.559
bubbles are always going to naturally

0:20:29.270,0:20:33.020
arise with the emergence of new

0:20:30.559,0:20:35.600
technology and the best investments

0:20:33.020,0:20:37.610
aren’t always the most popular so you

0:20:35.600,0:20:39.799
can see similar trends today too with

0:20:37.610,0:20:41.720
things like artificial intelligence and

0:20:39.799,0:20:45.440
machine learning those are huge buzz

0:20:41.720,0:20:47.480
words and again I’m just a college look

0:20:45.440,0:20:50.030
fresh college student who took one class

0:20:47.480,0:20:53.570
on AI but I think it’s a little

0:20:50.030,0:20:55.370
overhyped just because you have to in

0:20:53.570,0:20:57.620
class they talk about the most recent

0:20:55.370,0:20:59.659
research and it’s cool but it’s not

0:20:57.620,0:21:03.970
we’re not gonna be taken over by like

0:20:59.659,0:21:07.340
superior computer overlords anytime soon

0:21:03.970,0:21:09.230
so I encourage everyone to look into

0:21:07.340,0:21:11.840
anything you’re gonna invest in look

0:21:09.230,0:21:14.510
into the company and don’t just buy into

0:21:11.840,0:21:18.500
it because everyone else’s hmm that’s

0:21:14.510,0:21:21.830
really good advice yeah that’s the

0:21:18.500,0:21:23.809
dot-com bubble wow that’s really

0:21:21.830,0:21:25.460
interesting at first I was like wow how

0:21:23.809,0:21:26.720
did I not know that it’s like how come

0:21:25.460,0:21:28.510
we don’t learn about it well like first

0:21:26.720,0:21:30.190
of all I was like three at the time

0:21:28.510,0:21:34.690
[Laughter]

0:21:30.190,0:21:38.200
and yeah like as I said technology and

0:21:34.690,0:21:39.549
sex are not really my forte by like once

0:21:38.200,0:21:42.879
you explained it Michael hey this isn’t

0:21:39.549,0:21:45.190
really that confusing like I don’t know

0:21:42.879,0:21:47.230
I feel like it’s pretty easy to

0:21:45.190,0:21:48.519
understand once you take the time to

0:21:47.230,0:21:50.710
learn about it but I don’t know it

0:21:48.519,0:21:53.399
always kind of seems scary also like one

0:21:50.710,0:21:55.809
thing because of course I always got the

0:21:53.399,0:21:57.879
International mindset right I’m like

0:21:55.809,0:21:59.679
okay with the emergence of the internet

0:21:57.879,0:22:01.809
and like all these tech companies – I’m

0:21:59.679,0:22:04.090
sure it also just changed like the

0:22:01.809,0:22:05.950
composition of how we create businesses

0:22:04.090,0:22:07.539
and then like manage management within

0:22:05.950,0:22:09.100
businesses because like you’re talking

0:22:07.539,0:22:11.860
about how there’s technology being

0:22:09.100,0:22:14.409
developed all over the world and so I’m

0:22:11.860,0:22:16.570
sure like at this time like obviously

0:22:14.409,0:22:18.309
like there’s been like international

0:22:16.570,0:22:20.830
multinational like corporations before

0:22:18.309,0:22:22.269
this but especially with the internet

0:22:20.830,0:22:24.100
and all these tiny little technologies

0:22:22.269,0:22:26.590
like you have all these companies that

0:22:24.100,0:22:30.570
are investing in overseas technology and

0:22:26.590,0:22:33.940
working with engineers and entrepreneurs

0:22:30.570,0:22:37.929
overseas so I’m like curious to see like

0:22:33.940,0:22:39.909
how that impacted our stock market – and

0:22:37.929,0:22:41.590
like the global cyber I don’t know I

0:22:39.909,0:22:43.690
just think it’s like it must have been

0:22:41.590,0:22:45.309
such a revolutionary time period all

0:22:43.690,0:22:47.799
this new technology and then like all

0:22:45.309,0:22:50.049
this multinational cooperation as well

0:22:47.799,0:22:52.389
so it just must have been a wild time

0:22:50.049,0:22:55.120
people are talking about how Alibaba

0:22:52.389,0:22:59.320
you’re familiar with that company it’s a

0:22:55.120,0:23:00.970
good our business set up to Amazon where

0:22:59.320,0:23:03.340
you can kind of just buy everything I

0:23:00.970,0:23:06.669
will say that I have used Alibaba before

0:23:03.340,0:23:09.820
and that camera recognition is amazing

0:23:06.669,0:23:13.570
like that technology is great have you

0:23:09.820,0:23:15.490
used it no but was it is that what you

0:23:13.570,0:23:20.950
were using what was when we’re in China

0:23:15.490,0:23:22.659
together what was yeah yeah yeah right

0:23:20.950,0:23:24.759
so hopefully I’m I’m not remembering

0:23:22.659,0:23:27.519
this incorrectly but Alibaba is like the

0:23:24.759,0:23:29.169
parent company of Taobao and how about

0:23:27.519,0:23:31.240
you just take a picture of something and

0:23:29.169,0:23:36.129
then exactly what you want shows up it’s

0:23:31.240,0:23:37.720
fantastic but with that a lot of people

0:23:36.129,0:23:40.029
say that Oh a lot of people are just

0:23:37.720,0:23:42.960
investing in it because it’s overhyped

0:23:40.029,0:23:44.159
and budged so

0:23:42.960,0:23:45.510
now just do your research if you think

0:23:44.159,0:23:46.770
it’s a good company put your money

0:23:45.510,0:23:48.149
towards it if you don’t think it’s a

0:23:46.770,0:23:50.190
good company don’t put your money

0:23:48.149,0:23:52.799
towards it it’s good advice that

0:23:50.190,0:23:54.990
people’s to remember and yeah yeah

0:23:52.799,0:23:57.510
thanks so much for sharing all this this

0:23:54.990,0:23:59.279
is really interesting Lee oh yeah I need

0:23:57.510,0:24:02.399
to like look more into the stock market

0:23:59.279,0:24:03.840
it’s what do you explain it also just

0:24:02.399,0:24:05.700
like computer science in general like

0:24:03.840,0:24:07.590
the word computer science it’s so scary

0:24:05.700,0:24:10.529
to me but you got a good a job of

0:24:07.590,0:24:14.149
explaining it and yeah I would like to

0:24:10.529,0:24:17.070
hear this episode so yeah for those of

0:24:14.149,0:24:19.559
you would also like Jack to cover

0:24:17.070,0:24:21.090
certain topics let us know a lot of

0:24:19.559,0:24:22.830
people if I say like oh I majored in

0:24:21.090,0:24:25.649
computer science you feel like so smart

0:24:22.830,0:24:27.840
not really guys like it’s the same as

0:24:25.649,0:24:29.429
learning any other subject and you just

0:24:27.840,0:24:31.409
got to break it down and if you’re

0:24:29.429,0:24:33.690
interested in trying to get better at

0:24:31.409,0:24:35.340
understanding like investments the

0:24:33.690,0:24:37.320
economy things like that I think a lot

0:24:35.340,0:24:39.390
of people like to make it more scary

0:24:37.320,0:24:41.520
than it actually is everyone has the

0:24:39.390,0:24:43.890
ability to learn about it and empower

0:24:41.520,0:24:46.559
yourselves and invest in things and

0:24:43.890,0:24:49.260
build things and learn how to code you

0:24:46.559,0:24:51.330
are just as able to do that as anyone

0:24:49.260,0:24:53.820
else so we can definitely talk more

0:24:51.330,0:24:56.070
about that that’s so true that’s a good

0:24:53.820,0:24:58.440
point to make thanks for sharing that

0:24:56.070,0:25:00.220
Jack and yeah let’s let’s all get rich

0:24:58.440,0:25:12.979
together that’s all

0:25:00.220,0:25:12.979
[Music]

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