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[IP] more on Signs of a bubble?





Begin forwarded message:

From: Newmedia@xxxxxxx
Date: December 8, 2005 9:32:27 AM EST
To: dave@xxxxxxxxxx
Subject: Re: [IP] more on Signs of a bubble?

Dave:

There won't be another BUBBLE like the 1990's in most of our lifetimes -- simply can't happen. The next one comes in the 2040's . . . at the earliest.

The 1990's were analogous to the 1920's in that both periods reflected a repeating pattern in the roughly 50-60 yearlong cycle of what are called Techno-Economic Paradigms (TEP.)

These cycles break down into four periods(each about 15 years long), known as Irruption, Frenzy, Synergy and Maturity. The bubble develops in the Frenzy period and then pops -- leading to the Synergy period.

We are currently entering the 15-year Synergy period in the cycle associated with building a global economic infrastructure based on semiconductors. The analogous period for the previous cycle -- which was based on building an oil infrastructure -- came in the 1950's.

This timewarp analog is one of the reasons why "Desperate Housewives" is such a popular television show. <g>

The next cycle will be based on the ability to arbitrarily construct molecules -- organic and inorganic -- so it might be called "Molecular Manufacturing." Much of what is now known as nanotechnology as well as biotechnology is pointing us in this direction. But we are probably still a long way from the equivalent of the integrated circuit for this next cycle.

The best source on all this is Carlota Perez' book "Technological Revolutions and Financial Capital."

Head on over to Amazon and buy yourself one for Xmas!

Best,

Mark Stahlman
New York City

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