{"id":"asset_d8c539d829b6","type":"text/markdown","category":"text","name":"03-dotcom-2000.md","size_bytes":3607,"title":"03 dotcom 2000","description":"An analytical account of the dot-com crash (2000–2002), examining the mechanics of the bubble, the Federal Reserve's response, and its consequences. It traces how rate cuts intended to contain equity losses redirected capital into housing and mortgage credit, setting conditions for the subsequent financial crisis.","extracted_text":"# We Cured the Bubble With Another One: The Dot-Com Bust, 2000–2002\n\nThe Nasdaq peaked at 5,048 on 10 March 2000 and reached 1,114 in October 2002 —\na fall of 78 per cent. Around $5 trillion of market value disappeared. Companies\nthat had gone public without revenue, let alone profit, went to zero in numbers\nthat made the whole episode look, in retrospect, less like a market than a\ncollective hallucination with a settlement system attached.\n\nThe mechanics are well understood. A genuine technological transformation was\nunder way, and the market's error was not in believing the internet mattered — it\ndid — but in believing that mattering would accrue to the firms then listed, in\nproportion to their spending. Valuation methods were invented to justify prices\nthat conventional methods could not: eyeballs, page views, revenue multiples\napplied to companies with no plausible route to margin. Investment banks earned\nfees taking these companies public and employed analysts who rated them buy w","attributes":{},"usable_for":["period analysis of bubble dynamics and policy response","argument about unintended consequences of monetary policy","specific figures on market decline and regulatory settlements"],"provenance":"original-work","provenance_note":"An original analytical essay by its author.","kind":"analytical essay","reliable_for":"The author's argument about the dot-com crash and its policy aftermath, and the evidence it cites.","describe_v":6,"price_sats":{"card":0,"full":200},"content_available":true,"available":true,"retained_offered":false,"embed_offered":false,"licences":{"single-task":{"sats":200,"grants":"use for one task, then let go"},"retained":null,"embed":null}}