1999 - 2001: The Fad Years (Some Call Them the “Bubble” Years)

From 1999 to 2001, we had a split stock market. Inflation was stable, interest rates were fair, but all the long-term economic indicators were overrun for a time by an investing fad. Tech stocks climbed dramatically, and then fell. Other stocks weathered the storm. The fad went roundtrip in three years. The repercussions will be felt on two levels.

For the individual stocks involved in the fad, tracking for the next several years will be affected by the tax losses generated.

For the individual people involved, if the experience of 1968 is any guide, it will take a long time, maybe a decade, before they trust the stock market. They may, however, be susceptible to alternatives of various promise.

1999
In Colorado, two Columbine High School students use guns and explosives to randomly kill 12 students and one teacher before killing themselves.

The U.S. Senate impeaches President Clinton and, ultimately, acquits him on perjury and obstruction of justice charges in the Monica Lewinsky affair.

The United States posts its second surplus in two years at $122.7 billion.

NATO forces strike Serbian air defenses and other sites as Serb forces step up their efforts to crush resistance in Kosovo.

The world population reaches 6 billion. The designated 6 billionth baby is born in Bosnia.

In the United States married couples with children constitute 26% of the population as opposed to 45% in 1972.

First-class postage rates increase from 32 cents to 33 cents an ounce.

2000
The world braces for software glitches due to Y2K.

A decrease to a 35-hour workweek takes legal effect in France.

The U.S. government reports a 3.9% jobless rate, the lowest in 30 years.

The median price for a new house in the United States is $162,000; average size is 2,266 square feet. (This compares to a median price of $42,100 and an average size of 1,645 square feet in 1975, and a median price of $78,300 and an average size of 1,780 square feet in 1984.)

The U.S. Senate votes 83-15 to end trade restrictions on China.

The Russian government, under its new president, Vladimir Putin, approves a 13% flat tax on personal income, replacing the previous three-bracket system with a top rate of 30%.

The Melissa computer virus infects email in tens of thousands of computers, causing $80 million in damage.

Election officials begin a recount of the U.S. presidential election; winner remains in suspense based on the Florida result.

2001
Congress formally certifies George W. Bush the winner of the bitterly contested 2000 presidential election.

In Afghanistan, the Taliban orders the death penalty for anyone who converts from Islam to a different religion.

Pacific Gas & Electric (PG&E) files for bankruptcy with $9 billion in debt; California uses rolling blackouts to cut off power to hundreds of thousands of people.
First-class postage rates increase from 33 cents an ounce to 34 cents an ounce.

On September 11, terrorists attack the United States. At 8:45 a.m., American Airlines Flight 11 crashes into the North Tower of the World Trade Center in New York City. At 9:03 a.m., United Airlines Flight 175 crashes into the South Tower of the World Trade Center. At 9:38 a.m., American Airlines Flight 77 crashes into the Pentagon. At 10:10 a.m., United Airlines Flight 93 crashes southeast of Pittsburgh.

On October 7, U.S. and British forces strike 31 targets in Afghanistan. Air defenses, communication nodes, and other large fixed sites are targeted.