You may not label it as a bubble in comparison to the billions blown back in 2001, but it is a sign of the beginning of a build to sell out craze, which usually ends in a recession.

Acquisitions don’t cause bubbles, irrational financing does. If Google buys YouTube and never makes a dime on it, who gives a shit – they have the money lying around to do just that. CBS is the same. A bubble and subsequent crash happens when over-invested companies go IPO prematurely, go big on the market, and then go tits up after investors realize they’ve spent money on nothing. They bail out, essentially lighting fire to millions or billions of dollars. Poof. Gone. Then investors stop spending, innovation slows, and only the strong survive.

CBS spending some reserves on a half-popular video blog isn’t a sign of anything other than a bad decision at a Monday board meeting.

Why $1,000 per episode? The producers get a big cut, and then you have to add in other employees (i.e. Lindsay). Obviously that particular production team was the right choice, even if expensive. They hired Lindsay, and that’s the sole reason for acquisition (she was contracted to Wallstrip, and the only way to get her was to acquire the whole company).

CBS is simply looking for the next Amanda Congdon (sp?).