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Topic: Social Issues
Number of pages / Number of words: 6 / 1563
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However, during that time, basic economic indicators did not come close to increasing by as much as shown in the stock market. For example, corporate profits only rose by less than 60%. By these figures, there seems to be little rational as to why stock prices were so high. Indeed, the collapse of the US stock market in the early 00s indicated that stock prices were indeed to high, and the stock market could no longer support itself...


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By these figures, there seems to be little rational as to why stock prices were so high. Indeed, the collapse of the US stock market in the early 00s indicated that stock prices were indeed to high, and the stock market could no longer support itself.

To investigate whether irrational behaviour, to some extent, helped to cause the IT bubble, I will begin by looking at possible rational explanations and whether they alone can explain the dotcom boom and bust...


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