Even so, net mutual fund deposits were up virtually every month in 2000. VC firms brought us Yahoo, Juniper Networks, Sycamore Networks, Avanex, etc. Nor did the value of an idea or the fastest Internet router, the fastest switch or the fastest and most efficient software. Bankers will not lend money to an entrepreneur for an idea. They represent the future of this country and, hence, the globe.
Technology is still the strongest driving force in the U.S. economy.
And because both the Internet and Technology are inherently deflationary, they are the two strongest forces keeping inflation under control. China, with its massive labor force and low wages, will be an increasingly deflationary force on the U.S. and the global markets in the future. The only solution to the valuation problem is an increasing flood of IPOs to bring new technology companies to the market with new and better technologies. That means VC companies, not bankers, will finance the coming relentless flood of new IPOs over the next five years. Since technology will never stop evolving, this process will never end.