The underlying asset in a bubble is usually inherently valuable until the bubble itself starts driving creation of assets that wouldn't have otherwise exists. T

The underlying asset in a bubble is usually inherently valuable until the bubble itself starts driving creation of assets that wouldn't have otherwise exists. The housing bubble drove the prive of homes up enormeously, but the houses were very useful to their owners and had real value. Then speculators came and made a lot of houses that were above and beyond what normally would be required, but because of the bubble made sense. I think most of the "WEB 2.x IS A BUBBLE!" crowd are seeing people jumping in to invest at dumb valuations and startups being created for no reason other than to chase the money, and that is what they are fearful of. That could inflate the arena and make it worse for genuine startups.