The Exuberance of Internet Stocks, Homes and Obama's Cookies
The last paragraph of an article I read last November about Obama cookies someone put on the market around election time (the article I read is a dead link now) said: "I think everybody just ... thought, 'Oh, great cookie, great president — the world is a happy place. Barack's going to fix all the problems and if I have a bite of this cookie it's going to make me feel good,'" Maxfield said. As I read this story and in particular, the last paragraph, I couldn't help of a couple of other things: • The internet boom when internet companies were WAY overvalued and every Tom, Dick and Harry was opening one and going public in hopes of making millions. And everyone was buying any stock related to a hi-tech, internet-based company. It didn't matter that none of these companies had shown a profit - and it turns out, most never would. They crashed and burned in mid 2000. • The housing boom when everyone was buying way more house than they could afford. People w...