- Mar 19, 2007
Was the worst of it in 1999-2000? Yes. Was there a bubble before that? Yes. I remember my Intel Stock doubled in less than 2 months in 1996.There was real growth in the tech industry after Clinton took office. The internet started to take off (thanks Al Gore!) and computers became common in households. Intel and Microsoft were no bubble but carried the Nasdaq in those days. Real companies with real products, ideas and revenue helped that massive curve that started in 1995. Think Amazon, ebay, yahoo, etc.
It wasn't until 1999 that is spiraled into a bubble and companies with no income stream were going IPO and making money doing it. In response, the Fed raised interest rates on six separate occasions over a two year span to try and stem the runaway growth. Why did that corrective action start in 1999? Because that is when it started to go beyond normal growth and instead formed a bubble. A bubble that was not fanned and broadened by the administration, one that was cooled.
Did you live in the 90s?