Here's what the greatest economist of the 20th century and intellectual hero Milton Friedman said about new economy.
Q: Is the economic future that we see taking shape around us, the new information economy, so discontinuous with the past that it does indeed represent a new economy?
Answer from Milton: I think not. If you go back to the 1920s, when you had essentially the same phenomenon. What are the things that people say about the new economy now? It's a big technological development.
Q: But the bubble--now you'd better actually define what you mean by a bubble?
Answer from Milton: I don't know that I want to talk about a bubble. I want to talk about a bull market that gets very high and then is reversed and comes down again.
We've had three comparable bull markets since the '20s. We've had the '20s in the United States, we've had the '80s in Japan, and the '90s in the United States. And if you pluck them one on top of the other they almost coincide, they have exactly the same pattern.
So if this is new, the '80s was new, if that was new, the '20s are new.