Dot-Com Crash 2000
The 2000–02 dot-com crash was an equity-valuation collapse after a narrative IPO bubble — brutal for NASDAQ, milder as a banking crisis because leverage sat more in households and corporates than in dealer warehousing of the story.
Definition
TMT multiples discounted perpetual hyper-growth. The 2000 tightening, earnings misses, and a shift in the narrative unwound the IPO/lockup machine. Some frauds (Enron, WorldCom) were the credit aftershock, not the original object.
Why it matters
It shows a bubble can destroy equity wealth without a 1907-style trust run — unless the holders are levered. 2021’s speculative complex is often compared here.
Case
NASDAQ −78% peak to trough. Telecom capex hangover and a mild US recession. The 2001–03 credit events were a second act.
How to read it
Ask where the leverage is. Unlevered mutual-fund marks hurt statements; levered prime-broker marks hurt the system.