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Pastimes : THE SLIGHTLY MODERATED BOXING RING

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To: Carl Shaw who wrote (3342)3/18/2002 5:09:24 PM
From: Dayuhan  Read Replies (2) of 21057
 
Any idea what effect the spending because of Y2K had on the stock market bubble?.

Probably a factor, but hard to quantify. By the time it became a factor the bubble was already well on its way. I think the main factor was psychological: the rise of the individual net-powered investor created an investing class that had never seen a crash and was convinced that in the "new economy" the crash simply wouldn't happen.

this huge correction might have been much more moderate

In absolute terms it wasn't that huge; look at some 20-year charts and see what it looks like. Of course it would seem huge if you were heavily invested in the most bubble-stretched net stocks.
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