Buy, Lie, and Sell High: How Investors Lost Out on Enron and the Internet Bubble

A List of the Economic Consequences of the Bubble

• The world economy has been tipped into recession.

• The aftermath of the financial bubble is that high technology is starved for capital today. The Fed's August 2001 survey of senior bank loan officers found that banks have limited exposure to high tech and are tightening lending standards to high tech firms more than to other companies.^[105]

• Nor is much venture money available—new early stage commitments to entrepreneurial firms by venture funds are about one-tenth what they were during the bubble. The bad crowded out much that was good—start-ups following the tried and true path of get-it-right-first are now denied capital as a result of the fiascos brought on by the get-big-fast strategies championed ...