Blast From The Past: "The 1999 Boom With No Bust" Edition

It’s never different this time. All too often we forget (whether by choice or happenstance) what occurred in the past – missing the lessons from history and, perhaps in an effort to deny the reality, maintaining the status quo that cradles us so warmly every night. In an effort to bring back some of that “memory” – and dispel the inevitable recency bias (and cognitive dissonance) as even the Fed is admitting markets are frothy, we bring you 1999’s CNN Special “The New Economy – Boom Without End.”

A brief clip from the archives full of internet dreams, globalization hopes, growth without inflation, and most importantly productivity gains. It seems we weren’t that far off 14 years ago as Ed Yardeni notes, the internet is an inherently price-deflating animal (in its global competition exposing ways) which means – for firms to maintain profits (and stock prices), they must increase productivity… or in the modern parlance cut costs and lay off workers. “The economy has changed for good…” sums up the ‘it’s different this time’ view of the 90s bubble.


Stephen Roach notes at the time – “if we are not in a new economy and the ‘old rules’ come into play from time to time, then much of what has happened in the 1990s will ultimately be challenged.” Indeed Stephen…

Must watch…


And here’s the “productivity” gains they discuss…





(h/t @Ryknow16)


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