A better term is "growth phase". This growth phase, like the late '90s, creates new jobs, new technology, and new industries. All of those things are importan

A better term is "growth phase". This growth phase, like the late '90s, creates new jobs, new technology, and new industries. All of those things are important for a healthy economy. Eventually, some of these new companies will get bought out or go out of business. So what? Everybody is better economically because the founders and investors at least made the effort. A big factor in the dot-com bubble was a belief in the so-called "new economy", where people, because of the Y2K scare or whatever else, believed that companies didn't need good financials ( http://www.investopedia.com/terms/n/neweconomy.asp http://www.investopedia.com/terms/n/neweconomy.asp ). I don't think anybody has any illusion during this growth phase that solid financials aren't important.