Shaky markets offer lessons on cracks in global economy.
Few of the prophets of the new economy, who taught that traditional fundamentals could not be used to measure the performance of the dotcoms and their tech stock cousins, can be proud today of their misplaced enthusiasm. The lack of sustainable business models to enable companies to extract profits from rapidly growing revenues, has proved just as debilitating to new economy companies as it always has to the old. The irrational exuberance of March 2000 has been followed a year later by a painful hangover. The arrogant, if not the mighty, have been humbled. Quite a lot, if we think about it carefully.