"They're turning universities into incubators. It's happening at NYU and Harvard, two schools I have some familiarity with. Probably everywhere else too, to some extent. But I'd guess these two schools are pretty leading edge. Stanford has been there for a few generations."

"Gullibility is the principal cause of bubbles. Investors and the general public get snared by a “beautiful illusion” and throw caution to the wind. Attempts to identify and control bubbles are complicated by the fact that the authorities who might naturally be expected to take action have often (especially in recent years) been among the most gullible, and were cheerleaders for the exuberant behavior. Hence what is needed is an objective measure of gullibility."

"It amazes me that 50+ people could suddenly come out of the woodwork in an effort to “build a new relationship that’s not really a relationship” thinking it would give them an opportunity, or even an advantage, in the context of a set of hot companies.

When I think about the relationships I’ve developed, whether it be with investment bankers, LPs, co-investors, or anyone else, they evolve over a period of time. They don’t require boondoggles or fancy things; they require sincerity and substantive interaction over a long period of time. Then, when there are moments of opportunity, these are the people that I go to (and hopefully who come to me.)

There suddenly seem to be an abundance of “transaction relationships” out there. Entrepreneurs beware."

"As the foundations of this crisis were laid, there were always arguments against massive regulatory intervention to deal with it. Those arguments always sounded convincing. The stayed convincing even as the situation transformed itself from a justified boom in long duration assets driven by advances in diversification and by capital inflows pushing down interest rates, to froth, to irrational exuberance, to a full-fledged bubble."

"According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, Switzerland -- the central bankers' bank -- the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion. The main categories of the USD 1.144 Quadrillion derivatives market were the following:"

When scientists do money

"Sam Zell is widely regarded as one of the savviest value investors around. The fact that Zell, an old hand in real estate, was cashing out was widely seen as the sign of a market top."