How the Bubble moves to main Street

Those who say there is no Tech Bubble point to the present situation where the money is currently just within the industry. What they are not seeing is that the current phase is just the start, the need for Greater Fools ensures that mechanisms will be found to allow other people outside of the industry to invest. And here it comes this time round, with JP Morgan first up:

J.P. Morgan Chase & Co. has quickly rounded up $1.2 billion for a new digital-growth fund, furthering Wall Street’s bold push to capture stakes in fast-growing private tech companies such as Facebook Inc. and Twitter Inc.

According to a regulatory filing, J.P. Morgan’s asset management unit raised $1.22 billion for a fund called J.P. Morgan Digital Growth Fund LP. That’s about double the amount reported last week by The Wall Street Journal, which, citing anonymous sources, stated the firm planned to raise between $500 million and $750 million for a digital-media fund to invest in Internet and digital-media companies.

.................

The new fund shows that Wall Street is placing a premium on hot Internet companies. Last month, Goldman Sachs Group Inc. raised $1 billion from its foreign clients to invest in Facebook at a $50 billion valuation.

Those who doubt there is a bubble coming are welcome to read this (10 Telltale Signs) and this (The dynamics of bubbles)