TechBubble 2.0

Very astute thought from Dave Winer…

In the late 90s, the period of irrational exuberance, we knew the end would come, and we knew what the end would look like — a stock market crash of the dotcom sector. So, if Web 2.0 is a bubble, and if like all bubbles it bursts, how will we know when it happens?

I almost wrote a piece yesterday saying that since the Web 2.0 companies aren’t going public, they’re safe from busting in a visible, dramatic way. I almost said it will be hard to tell when the bust comes, it’ll be softer and slower, you won’t hear a crash or even a pop. But I was wrong, and today we got the first rumblings of the shock that will signal the end of the bubble.

Google stock will crash. That’s how we’ll know.

When I realized this, I should have known, because I’ve been saying for almost a year that Web 2.0 is nothing more than an aftermarket for Google. Startups slicing little bits of Google’s P/E ratio, acting as sales reps for Google ads, and getting great multiples for the revenue they generate by fostering the creation of new UGC to place ads on. When Google crashes, that’s the end of that, no more wave to ride, no more aftermarket, Bubble Burst 2.0. And the flip of this is also true — as long as Google’s stock stays up, no bubble burst.

Spot on. Google’s Price/Earnings ratio at the moment is around 60. That’s nuts.

Unsustainable energy

This morning I went to a sobering symposium on “Sustainable Energy” at the Cavendish Lab in Cambridge. First speaker was Daniel Nocera of MIT who set the scene in a witty and clever presentation. The world is currently using 12.8 trillion watts (TW). If you take the projected growth in population and multiply it by average energy use, you get a global demand for energy in 2050 that will be somewhere in the region 28 – 35 TW. He then went on to show that, in his phrase, “there’s no simple answer and no silver bullet” that can generate the energy will will need (and that’s entirely outside considerations of climate change). It’s an illusion to think that we can close the gap by conservation. Where else might we look? Biomass? Well, according to Nocera, the most we’ll get from that is 7 – 10 TW.

As we grapple with the challenge of meeting our future energy demands sustainably, it becomes clear that a diverse mix of energy sources will be necessary. In exploring alternatives, solar power emerges as a compelling option that deserves serious consideration. The abundant sunlight in many regions, including Dallas, presents an opportunity for homeowners to contribute to the energy transition by harnessing solar energy for their households. By engaging with reputable Dallas solar panel installers, individuals can explore the feasibility of installing solar panels on their homes, not only reducing their carbon footprint but also potentially generating a portion of their energy needs locally. While the scale of solar power generation may not single-handedly bridge the projected energy gap, its decentralized nature and potential for widespread adoption make it an important piece of the puzzle in our quest for a sustainable energy future.

What about nuclear? He thinks we could get 8TW if we built 8,000 new nuclear plants. Just think about that for a moment. There are 44 years to go before we hit 2050. That means we’d need to build and commission 182 nuclear plants every year from now on to get to that figure of 8,000. That’s roughly one new plant every two days. It ain’t gonna happen. Nocera’s talk left me with a number of thoughts:
* Solar energy is by far the best bet. He says that “more solar energy hits the earth’s surface in one day than all the energy we use in a year”.
* We will have to invent our way out of this. Science and engineering are the only hopes we’ve got.
* Our societies won’t be worth living in if we don’t have energy sources on which we can rely. Next up was Nick Butler, who’s Group Vice-President for Strategy and Policy Development at BP, the oil giant. If anything, his talk was even scarier. Some points:
* The world’s population is currently growing at the rate of 250,000 a day. (Query: is this net growth?)
* The current high level of oil prices is not due to physical scarcity of the stuff, but to fears about the security of our supply.
* These fears are well founded. Consider these facts:
There are four main importers of oil and gas — the US, Europe, Japan and (increasingly) China
Supplies of oil and gas come overwhelmingly from three sources — West Africa, Russia and five countries in the Persian Gulf, of which the most important in volume terms is Saudi Arabia.
* The transport infrastructure for getting oil and gas from producer regions to consumer regions is terrifyingly fragile, vulnerable and insecure. His conclusion: “the current position doesn’t feel sustainable”. And he’s a Vice President of one of the world’s biggest oil companies! He could see only two things that would act as drivers for radical change — a dramatic escalation of political fears about security, and the price of alternative sources of energy. I was reminded of my musings the other day about the intimate connection (never discussed in public by UK politicians) between energy supplies and national security. Britain, for example, is now almost totally dependent on Russia for supplies of gas.

Oh my Paxman!

From Comment is free

This is Paxman as you’ve never seen him before. Filmed on a mobile phone, by the look of it: out of focus, white balance all wrong, and with the camera on its side. He looks, well, pretty pissed off.

“Is this thing on?” he barks. “Hello! As part of the BBC’s commitment to saving money, not only are you the licence-payer required to watch Newsnight, you will shortly have to make it too. For reasons that are somewhat vague to me we’re going to choose five two-minute films made by viewers and broadcast them, as of right, in January. They’ll be voted for on our website by popular vote, all the details are … whose stupid idea was this…?”

Communications — the next decade

I’m at the OFCOM conference in London. The last session today was centred on the launch of a collection of essays commissioned by OFCOM and now published as a handsome hardback. My contribution is in Section 1: “Trends and Challenges”. (It should, of course, have been titled “Trends and Problems”, but the P-word is now banned in all polite circles.) The section also includes Jonathan Zittrain’s Inaugural Lecture and a terrific essay by Eli Noam.

A hyperpower in thrall to its client

Well, well. In Barbara Tuchman’s terrific study of ‘misgovernment’, The March of Folly, she points out one of the strange paradoxes of the war in Vietnam. As the conflict deepened, the government of South Vietnam weakened steadily; but the weaker the Saigon regime became, the greater the influence it was able to exert over the US.

And now in Iraq we see the same thing happening. See this report in today’s New York Times.

BAGHDAD, Nov. 28 — When President Bush meets in Jordan on Wednesday with Prime Minister Nuri Kamal al-Maliki of Iraq, it will be a moment of bitter paradox: at a time of heightened urgency in the Bush administration’s quest for solutions, American military and political leverage in Iraq has fallen sharply.

Dismal trends in the war — measured in a rising number of civilian deaths, insurgent attacks, sectarian onslaughts and American troop casualties — have merged with growing American opposition at home to lend a sense of crisis to the talks in Amman. But American fortunes here are ever more dependent on feuding Iraqis who seem, at times, almost heedless to American appeals, American and Iraqi officials in Baghdad say.

They say they see few policy options that can turn the situation around, other than for Iraqi leaders to come to a realization that time is running out. It is not clear that the United States can gain new traction in Iraq with some of the proposals outlined in a classified White House memorandum, which was compiled after the national security adviser, Stephen J. Hadley, visited Baghdad last month.

Many of the proposals appear to be based on an assumption that the White House memo itself calls into question: that Prime Minister Maliki can be persuaded to break with 30 years of commitment to Shiite religious identity and set a new course, or abandon the ruling Shiite religious alliance to lead a radically different kind of government, a moderate coalition of Shiite, Sunni and Kurdish politicians…

In an essay published before the US went to war in Iraq, Warren Bennis gives a useful summary of Tuchman’s concept of ‘misgovernment’:

In March of Folly, author Barbara Tuchman identifies several types of “misgovernment,” the most tragic of which is folly. Folly occurs when a government pursues policies contrary to the nation’s self-interest. To be classified as folly, misgovernment must satisfy three conditions. First, the misguided policy must be perceived as counter-productive, in its own time; that is, the decision not only looks stupid now, through the shining ether of time, but it looked hugely problematical in its day. Second, other feasible options must be known but rejected. Finally, the questionable policy must be more than the will of an individual leader. It must be shared and propped up by those around the leader, the product of a sort of group-think. Through that prism, Tuchman analyzes four egregious leadership failures: King Priam opening the gates of Troy to the Greeks; the actions of the Renaissance Popes that hastened the Reformation they so feared; King George III’s loss of the American colonies; and, finally and perhaps most relevant today, the Viet Nam war.

In writing about Vietnam, George Kennan observed that Lyndon Johnson and his inner-circle–Dean Rusk, Walt Rostow, and the Joint chiefs–were like “men in a dream, incapable of any realistic assessment of the effects of their own acts.” Today, we see the cortege of folly moving us inevitably toward a war with Iraq. And eerily like LBJ’s “men in a dream,” President Bush and his advisors are leading the march, acting out of sheer wish and will, not allowing nettlesome facts and uncertainties to deter them.

Bennis’s essay is very interesting — worth reading in full. Here’s the bit that caught my eye:

I found myself recalling a principle I learned more than 50 years ago while attending the London School of Economics. I was invited to participate in a training group at the famed Tavistock Clinic for those interested in the emerging practice of group psychotherapy. Its leader was renowned psychiatrist Wilfred Bion, who understood the dynamics of group behavior as well as anyone I’ve ever known. Bion’s insights were simple and profound. And, first among them, was that the leader must avoid, at all costs, getting overly involved with the sickest member of the group.

Focus on the sickest, he warned prospective leaders, and you will undermine yourself in numerous ways. You will polarize the group. The healthier members will begin to resent you and even question the legitimacy of your leadership. They will tend to sit sulkily by while you try single-handedly to detoxify the troublemaker. The only way deal with the sickest member, Bion counseled, is to leave space for the healthier ones to take the problem on collectively. Over-reacting to extreme pathology is the most predictable and serious mistake a leader can make, Bion argued, because it steals responsibility from those who should assume it–the healthier members of the group.

Goofs

We watched the wonderful Manon des sources (1986) on Sunday last. It was one of Sue’s favourite films, and I can see why. Later, I went looking on IMDB to find out who directed it and noticed the “goofs” link, which led to:

Revealing mistakes:

  • As Manon visits her father’s grave, a gravestone falls over notice in the bottom right-hand corner of the screen.
  • Crew or equipment visible: When Ugolin is hunting around 11:00 min into the film, you can see a crewman duck behind a bush after releasing the rabbit Galinette goes chasing after.
  • Did I notice them? Of course not.

    The benefits of being laid back

    Well, whaddya know? Sitting straight is ‘bad for backs’

    Sitting up straight is not the best position for office workers, a study has suggested.

    Scottish and Canadian researchers used a new form of magnetic resonance imaging (MRI) to show it places an unnecessary strain on your back.

    They told the Radiological Society of North America that the best position in which to sit at your desk is leaning slightly back, at about 135 degrees.

    Experts said sitting was known to contribute to lower back pain.

    Data from the British Chiropractic Association says 32% of the population spends more than 10 hours a day seated.

    Pardon me while I adjust my posture. Zzzzzz…..

    The next Millennium Dome

    James Miller pointed me to this splendid rant by Andrew Rawnsley on the ballooning cost of the London 2012 Olympics. Sample:

    The Games’ supporters do not like to speak about cost; they prefer to talk about ‘investment’, implying there will be some sort of return. Which will be what exactly? The experience of other cities is that international sports festivals do not attract tourists – they repel them. Tourists stayed away from Germany during last year’s World Cup because they did not want to spend their holidays in the company of thousands of football fans. When Australia and Greece staged the Olympics, tourists boycotted the countries, fearing traffic jams, a security clampdown and hotel rooms to be had only at rip-off prices. Who in their right mind is going to want to holiday in London in the congestion and security hell that will be the capital city in the August of 2012?

    Just as with the dome, supporters of the Olympics say they will regenerate part of London. I’m all for the regeneration of the East End, but you didn’t need to do it by bringing this overblown, ludicrously expensive spectacle to town. It is a perverse and wasteful way to regenerate that area of the capital by squandering money on facilities for which there is no long-term use and stuffing the mouths of developers and contractors with gold.

    When all their other justifications turn to dust, the cheerleaders fall back, just as did the supporters of the dome, on the claim that the Games will be some sort of tonic for the nation’s morale. The unfailingly optimistic Tessa Jowell proclaims that we should cheer for the Olympics because three million primary schoolchildren think they are going to be medal winners.

    That’s three million children who are going to be bloody disappointed, then…

    Great stuff. Worth a read.