18 • RUBY, WILDING & SWANSBURG Dg oaor dt fmu nodnsewy . eTrhe emma ka ri nkge tgwo oads mg ooi nn eg yu! pE, vuepr,yut hpi. n g w a s m a k i n g We all kno w wh at happened after the feel- good year s of the ' 90s: th e d ot- com bubble burst. We started the ne w century i n 2000 with t hree straight y2e0a0r2s, tohf emNaArSkDe tA Ql o sl os sets .7F8rpoemr c Me natroc hf i tosf v2a0l u0e0. Tt oh eO c t o b e r o f S& P 500 ® fell nearl y 40 percent. 9 Many people’s retirement accounts were severely depleted. A running joke at the time was that 401(k En)ms heasdhebdeiennmreadrukecet dtutrom2o0i1l, (tkh)esg. overnment responded. After years of raising interest rates leading into the bubble, the F eder al Re serve f inally lo wered i nteres t r ates in 2 002. 10 As America emerged from the 2000 financial crisis, t he Ft heed rme at ur kr ne te dr et oc osvl oe wr eldy . r Ta ihsoi ns ge rwa teerse. Aonk da ,yf ryoema r2s .0 0M2o tsot 2o0f 0u8s, wa cecroeu tnrtysi, nbgu tt oa te al erans tb tahc ek mwahrakt ewt we ha sa dh el ol psitnign uosuar l or entgi r. e m e n t Then, the real estat e bubbl e burst in 2008, sending the markTehtiscrtaimshein, gthaegamina.rket crashed fast, with the S& P 500 ® losi ng 3 7 pe rce nt o f i ts v alue in a f e w we eks. 11 9 Yahoo Finance . “ GSP C Historical Prices.” ho dt t2p=s 1: /0/3f i5n8a4n9c 6e .0y0a &h oi not. ce or vma/l =q1udo &t ef /i l%t e 5r =E hGiSs Pt oCr/yh&i sf rt oe qr yu?epnecryi o= d1 1d =&9i n5c1l 7u 8d 2e A4 0d 0j u&s pt eedr i Close=true 10 Luka Nikolic. Foundati on for Economic Education. August 10, 2019. “A Tale of Two Bubbles: How the Fed Crashed th e Tech and th e Housin g Markets.” hanttdp-st:h/e/-fheoeu.osrign/ga-rmtiacrlekse/tsa/-tale-of-two-bubbles-how-the-fed-crashed-the-tech- 11 Yahoo Finance. “GSP C Historical Prices ” hr itot dp 2s :=/ 1/ 2f i 3n 0a n7 c6e8. 0y a0 h0 o&oi .nc toemr v/aql u= o1 tde&/ f%i l t5eEr G= hS Pi sCt o/ rhyi s&t of rreyq? upeenr icoyd=11=d1&1i 9n 9c l1u4d5e 6A0d0j u&spt ee dClose=true
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