The DotCom Bubble in

California

s1180117
Seigo Maki
 Contents
1. What is the DotCom Bubble?
2. What happened with the dot com bubble?
3. How did companies and individuals suffer?
4. What was the impact of this bubble in the financial
sector?
What is the DotCom Bubble?

Happened the DotCom Bubble in the late

1990s
The DotComBubble around the market of
the United States.
Abnormal soaring of investment by internet
related companies
What is the DotCom Bubble?

Stock price rises abnormally between 1999-

2000
The bubble burst in 2001
What happened with the dot com bubble?

Achieved economic growth called the

miracle of the Celtic in Ireland
Also Achieved economic growth in India
because of English population
Stock prices soared IT-related companies in
China
How did companies and individuals suffer?

Many IT companies was forced to

bankruptcy
IT-related unemployment reached 560,000
in 2002
Only some venture such as Google, e-bay and
Amazon survived
What was the impact of this bubble in the
financial sector?

Monetary policy authorities was continued to

raise rates regardiless of stock prices fell
Rate cuts were made between 2001-2003
What was the impact of this bubble in the
financial sector?

But recession did not stop until 2004

Economy has recovered in 2004
As a result, Modulation of interest is
close to the value of the Taylor rule
 Conclusion
Anything not good overdoing
I think the bubble has brought a positive
impact
I think the bubble will occur if appear new
areas revolutionary field
 Reference
http://en.wikipedia.org/wiki/Dot-
com_bubble
http://www.nber.org/chapters/c0124.pdf
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