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The authors back up their instructive and provocative narrative with a calculation of the magnitude of the "price bubble" - the improbable earnings growth that would be necessary to justify internet stock prices.
The candor of the book is refreshing. The economic data are not ponderous; they are brief and to the point. The book kept my interest throughout even when it touched upon familiar matters. If you own internet stocks or are tempted to buy, you should read this lively and well written book.
The Internet Bubble documents the latest incarnation of the world's second oldest profession: separating gullible investors from their money. Not since the 1920s has the US seen such a highly evolved stock mania machine involving media outlets, market pundits, bankers, brokers, pension funds, venture capitalists, and legion uniformed investors taking it all in -- and getting taken in. This has been going on for years without much notice. At last we have in Anthony and Michael Perkins, founders of The Red Herring, working as investigative journalists who use their insider contacts to go out and get the story.
As the founder of iTulip.com in November 1998, a parody of an Internet company created to draw attention to the Internet stock mania game, I take a special interest in the Perkins' excellent new book. Just as we do on iTulip.com, Anthony and Michael Perkins believe that the Internet offers tons of valid investment opportunities. But over time as the mania machine evolved, a perfectly good investment opportunity has turned into a circus for suckers.
What is not explained in the book is how such a financial mania starts in the first place. So let's back up a bit. Nearly every mania was sparked by the convergence of four events:
1) The nation hosting the mania survives a traumatic crisis such as a war or depression -- in the current instance, the Cold War ended. Optimism rules the day. 2) Following the crisis, tensions among nations decrease and international trade booms. 3) A discovery, new invention or technology offers unmeasurable benefits, creating a sense of limitless possibility. Without precident, the market has no guideposts to help investors set a fair market value for securities issued by corporations that manufacture the new technology. Hundreds of businesses crop up to capitalize on the flood of money available to fund the new businesses. Some of the optimism is justified. Imagine what the first railroads meant to commerce? Suddenly goods could be shipped inexpensively over long distances in a set time period at relatively low cost. A huge boon to the economy, but in 1857 a bust to investors. The benefits of the new technology turned out to be great but not infinite. 4) Interest rates fall in the rapidly expanding and deflationary economic environment -- deflation driven by global competition and rising productive capacity. The money supply is permitted to increase rapidly in the absense of apparent inflationary pressures. The excess liquidity does not show up in the so-called real economy as higher priced goods and services, instead inflation arises in the asset prices. Why? Because increased competition and rising capacity lower profitability. Financial assets become the only profit game in town. Speculation ensues. Starting in 1996, the money supply in the US began a precipitous climb, and with it the stock market in general and Internet stocks in particular.
Which brings us back to Anthony and Michael Perkins. They explain the actual workings of the mania machine from the inside through interviews with key players. They explain where the mania started and how it evolved, the participation of venture capitalists and investment banks, and they lucidly compare the Internet bubble to the Biotech bubble that popped in 1992. They debunk the New Economy. Finally, they tell you where to look for real value in Internet investing.
This is an important book if you're in the stock market and especially if you own Internet stocks. Buy it.
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After the brief introduction, the book begins with a discussion about "Dickensian" elements in original books, and their relations to visual media. The agrument at first is a bit too general and obvious, but you should just read on. After the third chapter the writer speeds up his discussion, giving well-researched comments on the films, backed up quotations from various materials. Though the materials might not look rare in the eyes of those who are already versed in film history -- autobiographical writings, comtemporary reviews, the synopsis, etc. -- they help those who do not have knowledge on movie history to gain the historical viewpoint to glance back the current of many films.
Chapters 2-4 are devoted to discussion on the silent films. It is now a nearly impossible thing to make a perfect survey about this era, because many of the films are lost forever (the reason is explained by the words of director Frank Llyod in the book), and considering that fact, Mr. Pointer did a very good job, even though the argument often seems to lack in power, relying on second-hand knowledge. But that cannot be helped.
After Chapter 5, the discussion is about "talkies," and the book gets better and better as you read. His discussion covers the films until the 1993 "Edwin Drood," and, instead of displaying tedious scene-to-scene analysis which might have done harm to the book by its slow tempo, he gives each film concise summery of its characteristics and his opinions about it, which may disagree with yours, but mostly fair and to the point. Mr. Pointer does not neglect the more recent TV products, and gives fair judgement on them. There is even a section where the author deals with parodies! (such as British cult TV series "Avengers" -- remember Mrs. Emma Peel?")
The book also contains a list of films (until BBC's "Martin Chuzzlewit"), which is now superceded by our internet source like imdb. Of more interest is the cluster of clear stills (21 in all) which includes a rare one that shows Charles Laughton as Mr. Micawber in the 1935 "David Copperfield." After one-week shooting, he left the film, and as you know, W.C. Fields took the part. Though not a perfect book, since so many have been released after its publication, "Charles Dickens on the Screen" is a good book to know more about the area of filmed classics, which should be given more attention from both academic and non-asademic people.
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The movie that was based on this novel was pretty close, but the book is even better. On site B the animals are completely wild and most of them have never had any interactions with humans. Into this wild landscape comes Ian Malcolm and Sara Harding. As with the first novel it is interesting that Crichton decided to include children as part of the main cast of characters. It is also interesting that in both novels the children end up partially saving the day.
If you decide to read this novel then put aside the movie and read the novel for the sake of reading the novel. If you have not read Jurassic Park (only seen the movie) then don't worry because you should still be able to enjoy the story. I have read this book twice and still enjoyed it the second time around. I would recommend this book if you liked the movies and if you liked Jurassic Park the book.
Anyway, what I will say is that I don't like the accusations about Crichton writing this for commercial value because the film was released at the same time. Firstly, the set of characters is almost completely different. Secondly, the plot is also very different. This isn't Jurassic Park, it's not Sphere, its not even Timeline. But nonetheless, its still worth reading if you're a Crichton fan, especially if you liked the first book. But, as other reviewers have stated, it wasn't really a needed sequel, neither did it match up to the first book. The only real reason I gave it four is because it was entertaining enough.
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Dr Jacques COULARDEAU