

Bits of destruction - nikils
http://www.avc.com/a_vc/2008/12/bits-of-destruc.html

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veteran
This analysis is fair from a VC's point of view but incomplete.. not to reuse
political slogans but there are really 2 Americas.. there are very fundamental
problems faced by millions of people like lack of health care, education, and
jobs (jobs people can do with their skills and culture) and then there are
problems in terms of "top-line" growth.. In terms business opportunities and
the "top-line" growth stories, they are going to come back in very short time
and those stories do not necessarily need this "creative destruction" but just
innovation and speculative greed in fields such as utilities/energy, commerce,
and computing. The main problem here is - this destruction is going to push
behind great many people more and more and these people are not not going to
be part of next growth cycle and many of them were already not part of it for
last many years (but people ignored assuming America is great.and all
Americans are in great shape.. the problem is going to be even more severe
now).. This destruction can be called "creative" only if it creates new
business opportunities as well as social uplifting.. it is not going to be the
case as there are going to be huge social issues through this destruction so
we need to consider the whole picture

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ojbyrne
The thing is, most of the "bits" companies survive courtesy of the "atoms"
companies, either through advertising (Google) or through selling to them
(shrink-wrap software). Any shakeout in the atoms sector is going to hit the
bits sector pretty hard. The sale of pure digital products (i.e. with no
physical components at all) is pretty damn tiny.

