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In 1996 The FED was calling the Internet an "irrational exuberance" because the global economy wasn't doing well. Then, 3 major events led to the crash. This is
by bsvalley 10y ago
In 1996 The FED was calling the Internet an "irrational exuberance" because the global economy wasn't doing well. Then, 3 major events led to the crash. This is why the bubble burst:
- 1997 Asian crisis
- 1998 Russian crisis
- 1999 Launch of the Euro (flop)
April 14, 2000 was the End of a 3 week crash. The global market trend officially switched, the rest is history.
- passivepinetree 10y agoCould you give a brief summary of these events?
- bsvalley 10y agoThe financial crisis in East Asia was due to a massive foreign debt. The Russian crisis was a classic move, by devaluating the ruble and defaulting on debt. The euro opened at $1.19 and sank to $0.83 within two years. Meanwhile people were popping bottles of champagne in the internet industry.
- DrScump 10y ago1999 Launch of the Euro (flop) a flop at first, then within just a few years, it doubled with respect to the dollar (from ~80 cents to ~$1.60). Now it's back to something like 1.07 to $1.
- bsvalley 10y agoI said the "launch" was a flop. Not the euro itself. It launched at $1.19 and sank to $0.83 within two years. The launch was a flop and got investors worried.