Internet Bubbles: easy steps to loose money

The Internet Bubble
The Internet has revolutionised the world, business included. From around 1995 to the early 2000s there was a sort of strange aura around internet companies leading to 'stock bubbles', companies were pumped up to be huge with nothing but a web address then collapsed with no capital to reply their creditors.

This is simply how it works:
-Internet company is founded with an idea
-Someone finds out about this and is also convinced it is a good idea
-Internet firms of the past have jumped up stock market… so people assume this will
-people buy stock
-people recommend buying the stock
-more people hear about it and see the stock price rising (increased demand) so they buy (further increasing demand)...
-Shares soar!
-Baffled owners of the company release more stock to make a profit for them selves
-Demand for stock is still insainly high and people continue buying forcing the price up (even though supply is increasing)
-Owers of the company rease more and more stock
-The company is not actually that good.. (E.g: Netscape, fanstiastic but then wiped out by Microsoft.)
-Stock plumits down
-Company is struggling but has no stock left to release
-Company goes bankrupt.

Just demonstrates the stumbling block of economics... sometimes people aren't that rational.

Hung parliament keeping markets hanging

With the Torys on 306 seats, Labour on 258 and the Lib Dems on 57 we are presently in a state of hung parliment, before the election the Conservative warned of the effects on the economy but what has happened?
As we became closer and closer to a hung parilment the FTSE 100 fell more and more. The FTSE started on 12 April at just under 5800 but by the 4 may it had fallen to just over 5400. At the start of the 10th of may the FTSE was around 5125. This would imply that the hung parilment is hurting stocks but there are other factors, by 8:45am the FTSE had jumped to 5350, why? A euro stablizing fund has raised the FTSE but over all it is on the fall.