Cheap credit migrated from the dot-com bubble to the housing bubble

Evidence

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. — Andrew deWaard, Derivative Media, 83

Categorization

• XREF: The bubble-migration pattern — credit seeking new asset classes when one pops — is the template for how finance later flows into cultural properties like catalog acquisitions. — connects to: The Community Reinvestment Act did not cause the US housing bubble — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 883; The housing bubble traces to private securitization, not government GSE lending — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 888; Current tech enthusiasm parallels the late-1990s bubble dynamics — Nick Srnicek, Platform Capitalism, 27 (+1 more)