Digital Cabinet

Polevaulter Donkeyman's rants, raves musings and flame wars

Way to Hide the Ball BBC

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The BBC in an article about whether social media is another dotcom bubble:

Henry Blodget, editor-in-chief of Business Insider, believes the excessive valuations put on some social media companies were partly due to weakness in the economy in recent times, which left investors desperate for opportunities. …

But he says the good news is that the current technology bust is unlikely to be as serious as the one in 2000.

“To call the social media situation a bubble in the same way as the dotcom bust is almost an insult to a real bubble,” he says.

He played a controversial role promoting internet companies at that time and so is well placed to comment.


No shit, BBC. Blodget publicly bigged up stocks which he privately disparaged.[1] As the SEC stated in its settlement with Blodget:

Henry Blodget, a former managing director at Merrill Lynch, Pierce, Fenner & Smith, Incorporated and the senior research analyst and group head for the Internet sector at the firm, will be censured and permanently barred from the securities industry, and will make a total payment of $4 million to settle the charges against him.

The regulators charged that, among other things, Blodget, of New York City, issued fraudulent research under Merrill Lynch’s name, as well as research in which he expressed views that were inconsistent with privately expressed negative views. Blodget’s conduct constituted violations of the federal securities laws and NASD and NYSE rules, which require that, among other things, published research reports have a reasonable basis, present a fair picture of the investment risks and benefits, and not make exaggerated or unwarranted claims.


Footnotes


[1] Blodget’s internal e-mails

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Written by Polevaulter Donkeyman

August 15, 2012 at 11:46

Posted in Uncategorized

Tagged with , ,

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