[Flich]

I was just wondering how many of you thought that most people using the internet throws their money around? I mean some of these advertising schemes I here of are the most ridiculous things ever, but some how these people make money off of it. Sorry for my tangent but I just wanted your opinions.

[akula]

Originally Posted by Flich

I was just wondering how many of you thought that most people using the internet throws their money around? I mean some of these advertising schemes I here of are the most ridiculous things ever, but some how these people make money off of it. Sorry for my tangent but I just wanted your opinions.

People gave Pets.com over $100 million to sell $20 bags of dog food which cost $25 to ship to the customer. 300 years ago, people sold their houses and entire livelihoods so they could "invest" in tulips. Right now people in the US are buying houses for twice what they're really worth because they think there will always be another fool who will give them millions for it.

What you are talking about is called inefficient resource allocation (bubbles). It comes in waves and over time, company founders learn to ride these waves. These bubbles happen for a lot of reasons.

At 14, you'll probably miss the current web 2.0 bubble, but don't worry, you have a few coming up afterwards- China bubble, India bubble, mobile communications bubble and forget about nanotech, biotech and the sort of things that are gonna happen after quantum computers.

There's probably a few more of these bubble that I haven't mentioned.

Back to your observation. Of course all these schemes are completely useless. People do them because they are irrational- they can't fully quantify the benefits of choosing one alternative over another. But all of this is good in the end. Nothing great happens without irrational exuberance.

[Firefighter27]

You need to add one more question on that poll. I think most are in between, some are wise investments, some are throwing their money down the drain.