But Bubbles Can Do Some Good

To be fair, Tom Evslin points out that bubbles do have a good side.

“Irrational exuberance is back! To me that’s good news. Nothing great is achieved without irrational exuberance.

George Bernard Shaw wrote: “The reasonable man adapts himself to the world; the unreasonable man persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”

Reasonable rational people don’t make breakthroughs; they do me-to products. Reasonable rational people don’t fund breakthroughs; they fund proven technologies and yesterday’s winners. I have nothing against reasonable rational people. They are absolutely needed to take over at the point where entrepreneurs lose interest and run past the limits of their competence. If the world were left just to entrepreneurs and intrepid early stage investors, all their breakthroughs would be wasted for want of competent management to bring their innovations to scale and commercial viability.”

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