>How was dotcom, or 2007 compared in terms of people’s enthusiasm? 2000 tech bubble went something like this: There was huge tech investment leading up to 2000 due to the use of two-year dates in many databases. Many businesses needed to completely re-create and convert their databases, and many took the advantage to also upgrade their hardware. So there was market boom across all parts of industrial tech. This alone created a very large spike in demand with limited capacity to fulfill it all, so there was a lot of money to be made. Thus, investors were throwing insane capital investment money at anything remotely tech oriented. My LED factory literally got its paint and carpeting leasehold improvements financed at next to nothing with no collateral, and that stuff has negative asset value. The pop was triggered by a combination of the "Y2K disaster" that never happened, aforementioned irrational investment exuberance, plus rising Fed interest rates, and finally insider selling. IMO the insider selling triggered it because everyone was all high on their own smoke, then suddenly got paranoid by "what do they know that we don't" and then the market ran. 2007 (actually 2008 with the SLB bankruptcy) was about wall street playing games with CDOs using mortgages to pump up the credit ratings. They bundled 20% class "AAA" into 80% subprime junk mortgages, and then called it class still A (or B) because they were collateralized home mortgages, when it was actually just all junk. Individual home investor/flippers used variable rate mortages to effectively create a real-estate ponzi scheme, and the banks kept writing the paper because bank regulators were not stopping them. The artificial demand of individual home owners investing in an additional 2-3 more homes to flip created an over-borrowed market price spike due to the triple demand for primary single family residences. Eventually this ponzi scheme failed like they always do... when everyone ran out of homes to buy. And it went very fast and very hard as folks stopped making payments on their balloon mortgages. The early players made bank, the rest got stuck in bankruptcy and lost everything. And it took down some large wall street investment banks and their insurers who had over-leveraged themselves with badly rated junk CDOs. And home values dropped by 20-30% in about 90 days. In both cases, it was irrational exuberance. It was easy money. And in both cases it was tied to demand of hard assets. Not terribly different from today's demand for graphics cards/chips, data centers and electricity to power them. But in this case it's closer to the conditions of the 2000 bubble than 2008, because you and I aren't building AI datacenters using our own money. So when it pops, only your stock portfolio will be impacted, not your personal domicile.

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