Boo! - It's Bubble 2.0

Be afraid, be very afraid.

Bubble 2.0, Meet Blodgett 2.0

Talking of the past, do you remember Henry Blodgett?

Amazon was selling for about $275 a share when a little-known analyst, Henry Blodgett, predicted it would go to $400 - even though Amazon had never made a profit. Amazon did go to $400 and beyond.

Amazon's backer, Merrill Lynch, responded by replacing its pessimistic Amazon analyst. His replacement? Henry Blodgett. While this was great for Blodgett, it proved not so good for investors, many of whom got soaked when Amazon's value fell 75 percent.

Blodgett has said his prediction was based on sound analysis using new ways to measure a company's performance. Wall Street coined a new verb: to "blodgett" a stock.

Now what do we hear?

MySpace, the social-networking Web site, could be worth around $15 billion within three years, measured in terms of the value created for shareholders of parent company News Corp., a Wall Street media analyst forecast Wednesday.

Those who cannot remember the past....

Update: Sometimes truth is stranger than fiction....