The Dot-Com Crash, 10 Years On

Flickr/<a href="http://www.flickr.com/photos/dist0rtedwave/265821988/">N1NJ4</a>

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


Our friends over at Newsdesk.org pointed out to Mother Jones that March 10, 2000, marked the start of the dot-com crash. That’s the day the tech-rich Nasdaq stock index reached its peaked, fueled by speculation in the values of them thar new-fangled Interweb-based companies. (Remember the Pets.com sock puppet Super Bowl commercial? I do, fondly. Happy anniversary!) But it turns out those values were overvalued, and an HTML house of cards tumbled, dragging down the economy with it. Nasdaq closed yesterday down about 54 percent from its high a decade ago.

You’d think that would have been a fabulous cautionary tale far future stock market speculators in oh, say, securitized mortgages and credit swaps. But popular US economic discourse has actually slid backward since then: Nowadays, even the most earnest advocates for financial regulation—or even a little circumspection—are derided as Cassandras at best, or at worst, socialists who reject the free market.

Back in 1996, Fed Chairman Alan Greenspan—who had his part to play in both the dot-com and subprime bubbles—warned America to guard against its own economic hubris, “when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions…” The economist Robert Shiller made that phrase—irrational exuberance—the title of a 2000 book, in which he argued that the Internet-addled stock market was dangerously overvalued. He even put out a revised edition in 2005, warning of a similar phenomenon in the white-hot housing market.

Not that it mattered.

So until our divided nation agrees that you can have a democratic free market with a sane governor on its top speed, let’s drink a 40 to the memory of financial bubbles past—and future. And here’s hoping the next generation of working stiffs with monied dreams won’t ever have to tell their coworkers they’re “goin’ to Vegas.”

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate