This reminds me of all the dumb money that's been pushing the housing market, pushed by dumb lenders (sub-prime, option ARMs, no-doc loans), etc. I mean dumb not because homebuyers are stupid, but because the average loan originator makes their money selling the loan -- not making sure the loan is a good investment.

He can argue that dumb money is feeding venture fratricide and results in major shakeouts, but you'd have to carefully distinguish between simple "knock off" companies and worthy competition. Smart money goes into companies that offer an improvement over an existing ideas.