I suppose it is appropriate that the Wall Street Journal tapped David Hornik of August Capital to defend the bubble. As well as investing in web companies such as Technorati and Six Apart, Hornik puts out the Venturecast podcast. To paraphrase Jason Calacanis: you know it's a bubble when the VCs start doing radio shows. Today's Wall Street Journal debate — Is 'Web 2.0' Another Bubble? — is pretty standard, except for Hornik's heroic assumption that venture capitalists, who lack even the discipline of investing their own money, are more level-headed than individual investors.

The Web 1.0 bubble inflated because the public markets were willing to bet on unproven ideas. Public markets are ill suited to evaluating such risks. On the other hand, the venture capital community exists precisely to take on that risk... Venture capitalists will rationally stop investing in ideas that don't bear fruit.

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