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Topic: March 10: The Day the Bubble Burst

  1. #1
    Join Date
    Oct 2000
    Orcas Island

    March 10: The Day the Bubble Burst

    Wired has an interesting article about March 10, 2000: The Nasdaq hits 5,048.62, the high-water mark of the dot-com boom. It's all downhill from here.
    "The boom is more accurately described as a bubble, since it rested largely on wild stock speculation and freewheeling venture capital investment that resulted in the often ludicrous overvaluation of sketchy internet companies. Established business practices -- for example, asking questions like "What do you guys actually do?" -- were being ignored by investors and VCs hoping to cash in quick on new models that often were no models at all.

    The frenzy was built on what seemed to be the limitless potential of the internet as a cash cow for those daring enough to take risks. In the end, e-commerce did become a big deal, but it has evolved pretty much along conventional business lines. Big companies predominate and smaller entrepreneurs with a solid plan can thrive. The Jolt Cola kids, and their skateboards and Foosball tables, have largely passed from the scene.

    On March 9, 2000, however, the sky was still the limit. But the euphoria, built as it was on smoke and mirrors, couldn't last. And it didn't. On March 10, the Nasdaq Composite index peaked, more than doubling its value of a year before. But then the slide began and it was a precipitous drop, which is why

    March 10 is generally considered to be the day the bubble burst."
    I wonder if we have new bubbles ready to burst. Perhaps real estate or the price of music technology

  2. #2

    Re: March 10: The Day the Bubble Burst

    I really wish the North Cali real estate would burst hard. It has slid from grotesquely, laughably overpriced to merely grotesquely overpriced. I've been commuting out here every month from Texas and love it, but the housing situation is just crazy.

  3. #3

    Re: March 10: The Day the Bubble Burst

    The credit bubble will be the next one to pop. Housing didn't burst so much but it has a very big leak at the moment. This country's economy is built on debt, mainly housing and credit card debt. So housing is in a downturn and credit is getting out of control. Once the debt bubbles burst it's all downhill for awhile.

    The government is of course out of control with spending on Iraq which if not stopped soon will be devastating.

    Of course Wallstreet itself is a big, debt leveraged to the hilt, bubble ready to implode. I think the greedy hedgefunds will eventually implode from risky debt leveraged investments in a shakey global economy. Then there's the Japanese Yen carry trade that shakes the world economy whenever they raise interest rates. The Yen carry trade is where investors usually large hedgefunds and institutional investors borrow large sums of money from Japan which until recently loaned money with no interest, now at .5%, and then invest in other countries treasury bonds, mainly US, that pay about 5% interest.

    Then of course there is peak oil and global warming.

  4. #4
    Senior Member rayzalaf's Avatar
    Join Date
    Jan 2007

    Re: March 10: The Day the Bubble Burst

    Quote Originally Posted by js33

    Then of course there is peak oil and global warming.
    go get a job in the global warming industry,
    Scientists looking for funding are getting money thrown at them as long as they say their research is to do with this nonsense!
    the oceans release more CO2 in a year than man can produce in a millennia.

    The sun controls the earths atmosphere!


  5. #5

    Re: March 10: The Day the Bubble Burst


    Sure the sun greatly impacts our weather as well as the oceans. Warm oceans release C02 while colder ocean waters reduce or absorb CO2 and the debate rages over global warming. But there is no denying the pollution caused by human activity. Whether that is leading to global warming is being debated.

    Here are two pictures of Beijing, China. The one on the left after two days of rain. The one on the right was a "normal sunny day" according to the photographer.


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