...The Internet Bubble Fundamentals of E-Commerce Instructor: Scott Howell Student: Lisa Mercer May 27, 2012 Introduction Within the past decades of the internet first being established the lives of everyday Americans and the world have changed greatly. Businesses have changed and evolved greatly with the access to the internet, as many are able to purse dreams of starting a business and possibly making millions. The internet has opened the doors for many to communicate with each other, receive daily news, and to do shopping. The upcoming of possibilities through the internet also led to irrational decisions brought on by greed from investors that made way for the Dot Com Bubble. History of Internet A pioneer of the creation the internet was Tim Berners-Lee. Though the internet didn’t become wide spread until the early 1990s the making of the World Wide Web can be traced back into the 1980s. Berners-Lee tried to sell his creation to the company that he was working for in Switzerland, but they were slow to acknowledge his efforts.(Griffin, 2000) With that Berners-Lee turned to the internet community in 1991 making his World Wide Web browser and web server software available. (Griffin, 2000) Many enthusiasts began setting up their own web servers around the world. Many scientists were already using the internet to share information found it easier to post their information on the web and wait for a reply. With some government agencies having the responsibility...
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...The Internet Bubble (1998-1999) The internet bubble that burst during the year of 1998-1999 was similar to the housing market affect we saw happen no more than four years ago. In the case of the housing market, you had large market firms offering different types of loans to individuals that really couldn’t afford them (Balloon rate loans, Adjustable rate loans just to name a few). The main objective of these larger companies (Freddie Mac, Fannie Mae included) were to gain a significant profit while the “getting was going good”. In other words, they wanted to cash in on the loans they were lending to people that they knew eventually they wouldn’t be able to afford the loan. Whether the customer could afford the loan or not, wasn’t the main concern of the few that were running this ridiculous scheme. Once they saw that overall situation was going to eventually fall back on the customers who trust them with the loans they were signing up for, the quickly slid out the back door and left the customers in a world of trouble. Regardless if their companies went down, a few of people at the top of the food chain actually got rich off of the downfall of the housing market. Again, this is similar to what happen to the internet bubble before it bust to pieces. There was some research that was done in 2003 that showed how there was a radical transformation in the profile of IPO investors (Entrepreneurs Exploiting the Internet Bubble 1998 to 2001: Do Insiders Abandon Ship at the First...
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...Internet Bubble Table of Contents 1. The Beginning 2. World Wide Web and Internet-Not The Same Thing 3. Rise of the World Wide Web 4. Fall of The World Wide Web 5. Conclusion The Beginning The World Wide Web was officially introduced to the world on August 6, 1991 by Sir Tim Berners-Lee. The World Wide Web refers to a system of resources that will facilitate individuals using computer to view and interact with different type of information. The concept of the World Wide Web is to combine the methods of computer networking into a dominant and easy to utilize worldwide information system. Tim Berners-Lee formally introduced his project to the world on the hypertext newsgroup. In his own words from a post he said “aims to allow links to be made to any information anywhere”. It linked between different documents using the hypertext method. He made available all of the files necessary for people to replicate his invention. Although invented many years earlier Mr. Berners-Lee’s invention married hypertext with the internet. World Wide Web and Internet-Not The Same Thing The World Wide Web and the Internet are terms that to most people mean the same thing. While they’re related, their definitions are different. The Internet is the structure on which the World Wide Web is based which is at its most basic definition an electronic communications network. The World Wide Web is a part of the Internet “designed to allow easier navigation through the...
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...The Internet Bubble Burst Sandra D’Adamo Intro to E-Commerce March 27, 2014 Professor MacKenzie Table of Contents Introduction………………………………………………………………………………..3 How the World Wide Web Began………………………………………………………….4 Tim Berners Lee……………………………………………………………………………4 How the Bubble Inflated…………………………………………………………………..5 How the Bubble Popped…………………………………………………………………..6 What Lessons were Learned……………………………………………………………….7 Could it have been Stopped………………………………………………………………… Introduction The internet bubble history started in 1993 with the public being able to access the World Wide Web. The WWW was inflated with the overpriced investment returns from 1994 through 2000. The bubble of the WWW busted wide open in 2001. At that time the Nasdaq was often quoted as a big indicator of the bubble. During that time the Nasdaq rose from around $750 dollars to approximately $5130 dollars. That was and incredible increase of about 682% from January 1995 continuing through March 2000. During this time the industry was focusing primarily on computer software. They focused on this due to the high profit margin for the software. In this paper I will explore the many avenues of how the WWW was created and the rise and fall of the internet creation. Figure [ 1 ] flatworldbusiness.worldpr How the World Wide Web Industry Began In the beginning ideas for the WWW go back as far as 1946. A gentleman named Murray Leinster wrote a story that talked about Logics also known as computers...
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...dot-com bubble that occured in the 1990's through the early 2000's was said to have left some major negative impressions on the world of the internet and our economy, but that is not necessarily true. Because of the dot-com bubble, there have been many great outcomes that often goes unnoticed before looking past all of the businesses and internet companies that went under when this bubble finally burst in the early 2000's. In fact, many say that the dot-com bubble and burst was actually a needed cause and effect that has shaped the internet into what it now is today. Many people believe that a lot of the websites that existed during the dot-com bubble would have had some sort of success if it wasn't for the network infrastructure at the time. The thing is, not many people didn't have access to broadband and the websites weren't getting the exposure and full potential that it could have received. This is especially true for some websites, such as Broadcast.com (Altucher Confidential, 2011). This very same thought occurred during the dot-com bubble and computer scientists and engineers realized that there was a very much needed improvement to the infrastructure of the internet. In order to correct this, many businesses in the tech industry began using tax money to lay high-speed fiber optic cables so that the internet would be more accessible in certain cities and states. This is probably one of the most beneficial things that came about from the dot-com bubble because...
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...Run Number | Bubble size | Vortex | Distribution of bubbles | Foam | Evenness of flow | 1 | Large | In Middle | Evenly distributed in the bulk with a lot present near baffles | Foam present at top | Even in the middle | 2 | Larger | Present | | | More turbulent | 3 | Smaller Bubble size | No vortex seen | | Lot less foam | It was noticed that one air bubbler was bubbling more air than the air. Discuss why this happened. | 4 | Small bubble size | Present | Much less bubble formation | Present at top | Turbulent | 5 | Medium sized bubbles. Bigger than run 3. | No vortex seen | Less bubble formation | Less foam | Bubbles were seen evenly generated from both bubblers | 6 | Medium sized | Present | Evenly distributed in the bulk with a lot present near baffles | Present at top | Turbulent | 7 | Large | No vortex seen | | No Foam | Bubbles were evenly formed from both bubblers | 5.3 Analysis of Variance in parameters based on pooled data Variance in data was observed in each set of experiments due to a number of factors. These factors include stirrer speed, oxygen content, and the different sizes in air stones. From the ANOVA illustrated in Figure 1, the sources X1, X2, X3, X4 are oxygen flow rate, stone size, stirrer speed, and groups respectively. It is seen that the largest variance occurs at the stirrer speed parameter, with a F value of 24.71 as compared to oxygen flow rate at 1.82, stone size at 1.98 and groups at 0.15. This shows that the stirrer speed...
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...for the coated air bubble, which is the only coated bubble available for sale in America. This coated bubble has much stronger resistance and protection than the typical air bubble, as shown on the cushioning curve in exhibit 2. Sealed Air has also educated the market on their technology, so most clients don’t mind paying extra for the improved technology. They have recently encountered competition from a small firm that is selling uncoated air bubbles for a lower price than Sealed Air. This case analyzes the problem and the various steps Sealed Air can possibly take to beat the competition. In conclusion, the best option for Sealed Air would be to invest in uncoated bubbles as a sub brand of Sealed Air. I. BACKGROUND Introduction Sealed Air’s registered trademark name for it’s protective packaging materials was AirCap. The feature that differentiated AirCap cushioning products from all of its competitors was its barrier coating technology which greatly increased air retention, meaning less compression and better protection. Barrier coating and its customer benefits had been the central theme of Sealed Air’s AirCap cushioning for 10 years now. The three major segments for protective packaging market were positioning blocking, and bracing, flexible wraps and finally void fills. All AirCap cushioning was sold through distributors. II. ANALYSIS Problem Identification: Sealed Air is considering if at all they should dive in to the uncoated bubbles market even though...
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...Market Analysis Bubble tea is specialist drink increasingly being offered in cafés, coffees shops and bars.It originates from Asia and is made up of hot or cold tea, milk, sugar and giant black tapioca balls. Ice is then added and the drink shaken to create the bubble effect. Bubbletea is often referred to as pearl shake, tapioca ball drink; boba ice tea and bubble drink among other things.Owing to their influences, bubble tea cafés are often Asian-themed in décor and may alsosell Asian snacks and food. They are often situated in fashionable areas of cities, populated by urban professionals with high disposable incomes and an interest inalternative eating and drinking venues.Bubble tea is a tea beverage that originated in Taiwan in the 1980s. The term "bubble"refers to the tapioca balls in the drink. These chewy tapioca balls, or "pearls," areconsumed along with the beverage through a wide straw. Bubble tea is especially popular in many East Asian and Southeast Asian regions such as Taiwan, Brunei, China(including Hong Kong and Macau), Malaysia, the Philippines, Singapore, South Korea,Thailand, Indonesia, Vietnam and Australia.Bubble tea is a mixture of iced or hot sweetened tea, milk, and often other flavorings. Thedistinctive characteristics of bubble tea are the black gummy balls made of tapioca (or,more commonly in East Asia, yam starch), called "pearls" or "boba" or balls that sit at the bottom of the cup. The pearls are larger than those found in tapioca pudding, with adiameter...
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...Summary Capital Bubble Tea Cafe is a start-up bubble tea cafe that will also offer a selection of bakery products, located in Capital City, Statesville. Capital Bubble Tea Cafe expects to catch the interest of a regular loyal customer base with its broad variety of bubble tea as well as pastry products. Bubble tea is specialist drink increasingly being offered in cafés, coffees shops and bars. It originates from Asia and is made up of hot or cold tea, milk, sugar and giant black tapioca balls. Ice is then added and the drink shaken to create the bubble effect. Bubble tea is often referred to as pearl shake, tapioca ball drink; boba ice tea and bubble drink among other things. The term "bubble" refers to the tapioca balls in the drink. These chewy tapioca balls, or "pearls," are consumed along with the beverage through a wide straw. Bubble tea is especially popular in many East Asian and Southeast Asian regions such as Taiwan, Brunei, China (including Hong Kong and Macau), Malaysia, the Philippines, Singapore, South Korea, Thailand, Indonesia, Vietnam and Australia. Capital Bubble Tea Cafe will be Asian-themed in décor and we will also sell Asian pastries, snacks and food. Capital Bubble Tea Cafe will be situated in a fashionable area of Capital City, populated by urban professionals with high disposable incomes and an interest in alternative eating and drinking venues. Compared to opening a full size restaurant, the start up costs to open a bubble tea cafe are ...
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...Table of content I. Introduction to credit crisis and Bank CEO Incentives…………………….2 II. Other factors of credit crisis………………………………………………3-4 a) Housing bubble b) Interest rate and inflation c) Unemployment III. Conclusion…………………………………………………………………..5 IV. References……………………………………………………………………6 In my following essay, I will try to explain clearly about credit crisis and Incеntivеs оf Bаnk Chiеf Exеcutive officеrs are nоt mаjоr fаctоr in crеdit slump. At first, lets to еxplаin what are сredit сrisis and its rоle in еcоnоmy. Making a hard to obtain financing to debtors by shortening of funds in the credit market is called as credit crisis. It is because of limited assets obtainable for lending and the price for assets for borrowing are increases so fast. Creditors don’t want or can not to lend an asset again, because they meet to losses on previous loans. This is caused by non-payment by debtors and defaults on loans, which decreases their value. In this situation, banks are trying to recover expenses and to return all money that they lost by selling debt. Then, if prices fall, the bank suffers losses. They cannot borrow a huge amount of funds if capital reduces. Also, if the banks take on more risk in the market, they will increase interest rates on loans to reward for this risk. It will bring to increasing the price of borrowing, but also will bring to decreasing the borrowers. In general, reducing the liquidity of capital and reducing...
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...Dot-Com Bubble Table of Contents Abstract ................................................................................................................................................... 3 Introduction ............................................................................................................................................. 4 Causes ..................................................................................................................................................... 4 Effects ..................................................................................................................................................... 5 Lessons learnt.......................................................................................................................................... 7 Conclusion .............................................................................................................................................. 7 Appendix ................................................................................................................................................. 8 Reference List ......................................................................................................................................... 9 Abstract This report presents an analysis of a stock market bubble, well known as “dot-com bubble”, which developed roughly during a period from 1995 to 2000, and ended up in 2001. The report discusses...
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...The Dot.com Bubble The mid-1990s marked the beginning of a new form of market environment that one could do business through the Internet. This was also the beginning of the so-called dot.com boom in the Spring of 1995 and it would later go bust in the fall of 2000. A year after the bubble burst, 327 companies remained but every one of them experienced the stock price slide beginning in September of 2000 (Becker, 2006, p.34). Amazon.com is the first major company that attempted to use the Internet to offer and sell products. In addition to the companies that sell online, companies that provided telecommunications and Internet support were also born such as Cisco Systems and Lucent Technologies (p.34). Other companies entered the market to provide web browsers such as Netscape. Another segment in this market is the service providers that provided users access to the Internet such as America Online and CompuServe (p.34). Finally, there are websites that offer web content and information for sale (p.35). These online companies, in order to raise capitalization either approached venture capitalists for financing or offer their stocks to the public. Becker (2006) cited that nature of these IPOs from online companies as “examples of speculative bubble” (p.41). A bubble or boom results from assets being over valued and they continue to rise for an extended period (p.41). In bubbles or booms, there is also the element that involves behavior – crowd or herd. Although many were initially...
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...If we need to have this market operation in a "clean" way, the incentives of the intermediaries should not be directly related to the short term gains from this capital flow. However, in real life, that is not the case. The one intermediary whose incentives are most misaligned can be the money managers. Though it is true sometimes they are under pressure from "greedy" investors, it can be true that, in most of the cases, they are the one who build up the bubble (willingly or unwillingly), due to the fact that, the incentives they received are directly from their short term (e.g. quarter or annual) performance, against the market benchmark or other money managers. 3. Who, if anyone, was primarily responsible for the Internet stock bubble? My view is that, economic bubbles are part of the capitalist market cycles, it is very difficult to say who was primarily responsible for a economic bubble. There is this old saying that, "when market is going crazy, no one can really do anything about it". But take the 2000 Dot-Com bubble case, if we really have to identify someone who was more responsible than others, it seems it may be the sell-side analysts. This was mainly due to the...
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...What Caused Economic Crisis? Readers Questions: What are the factors that makes today’s economic crisis? Which of them are the most important in today’s economic crisis? Some of the most significant factors in causing today's economic crisis: • A glut of saving from Asia. A glut of savings poured into US and similar countries like UK. This kept US interest rates low and encouraged high levels of consumer spending in US. It encouraged a large current account deficit in the US. It also encouraged an asset bubble, because it was cheap to borrow and this encouraged unsustainable lending. • US interest rates kept too low for too long around 2003-2005. This encouraged an asset bubble, especially in US. The problem was that inflation was low and people felt this was the most important target. In targetting inflation, people ignored the asset bubble. (see: Mistakes of Alan Greenspan) • Bad Loans. Probably the biggest cause of the current credit crisis. Banks and mortgage companies made a serious of bad loans especially for subprime mortgages. Basically, people were lent mortgages they had no realistic chance of repaying. Mortgage companies and banks were left with a series of bad debts they had to write off. (see: Subprime crisis) • Lack of Capital reserves. In the boom years, banks pursued a reckless dash for growth. This meant lending a high % of deposits. Therefore, when they suffered bad losses. They had no reserves to call upon. This led to a dramatic drop in bank loans...
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...Charles Kindleberger: Anatomy of a Typical Financial Crisis January 03, 2009 We start with the model of the late Hyman Minsky, a man with a reputation among monetary theorists for being particularly pessimistic, even lugubrious, in his emphasis on the fragility of the monetary system and its propensity to disaster. Although Minsky was a monetary theorist rather than an economic historian, his model lends itself effectively to the interpretation of economic and financial history. Indeed, in its emphasis on the instability of the credit system, it is a lineal descendant of a model, set out with personal variations, by a host of classical economists including John Stuart Mill, Alfred Marshall, Knut Wicksell, and Irving Fisher. Like Fisher, Minsky attached great importance to the role of debt structures in causing financial difficulties, and especially debt contracted to leverage the acquisition of speculative assets for subsequent resale. According to Minsky, events leading up to a crisis start with a “displacement," some exogenous, outside shock to the macroeconomic system. The nature of this displacement varies from one speculative boom to another. It may be the outbreak or end of a war, a bumper harvest or crop failure, the widespread adoption of an invention with pervasive effects---canals, railroads, the automobile---some political event or surprising financial success, or debt conversion that precipitously lowers interest rates. An unanticipated...
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