The bubble is flat. In 2008, the the only advantage in developing web apps in the US is the marketing and funding advantage - being close to the web 2.0 clique in the silicon valley. In huge emerging markets like China and Russia quick and smart entrepreneurs are taking existing, trendy apps and localize them. Is this a blocker for the facebooks and bebos? It might be if they will gain momentum and will adjust their features and content to the local culture.
Here are the cloned facebooks of China and Russia:
http://hainei.com/
http://vkontakte.ru/
I'm Nir Ofir. Social Media and the way it transforms our culture excites me and keeps me busy. I'm in the process of launching my new startup company 
In the U.S., there is a major push to monetize the web properties mentioned prior because of the amount of users originating from the U.S. However, these emerging markets are not as important to the U.S. internet companies because they are too focused on events in the local (or in this case national) market(s). Plus, this being an election year has taken the spotlight on candidates in the U.S. National Election. All in all, they are really ‘thinking’ globally but only acting locally. This is the downfall of U.S. politics and the shortsightedness of many Americans.