One result was the dot-com boom and bust from 1995 to 2000, as venture capital and financial speculation fueled the growth of fifty thousand companies looking to capitalize on the popularization of the internet. When overvalued companies could not produce the profit that was promised, investors fled the sector and the bubble popped in 2001. However, the cheap credit continued, fostering conditions for a new bubble to inflate, this time in the housing sector.

XREF: Links to lessons on speculative cycles and how cheap credit migrates between asset classes after a bubble bursts. SEED: Could seed an article about how speculative capital flows from one sector to the next, with the dot-com-to-housing transition as a case study.

Andrew deWaard, Derivative Media, loc. 83