[abrenzel]

Eventually, that is the beneficial effect of a bubble bursting. On the downside, the short term of a bubble bursting brings risk aversion and particularly aversion to debt.

I'm in agreement with the linked article that the "valuations" of companies like Facebook and Groupon are facially absurd. Facebook is worth $60 billion? On what planet? Yes, they have a lot of users, but are they monetizing them to the degree necessary to sustain that valuation? Facebook's books are a black box so we may never know, but my strong suspicion is no.

The little mini-bubble going on in some tech startups as well as the bubbles building in asset classes like commodities are the direct result of nearly every nation in the world pursuing the "beggar thy neighbor" (read: currency devaluation) strategy at the same time. The money pouring off the printing presses and/or being borrowed by national governments is heading straight into these types of investments. When that cycle ends, prices are going to drop like a rock.

Back to the original comment, the "boring" or smaller companies being ignored in the frenzy will benefit from that, eventually. But first the damage done by bubble will have to be healed, and that can take awhile.