Divergence Point: February 2000. Greenspan announces a pause in rate hikes, citing productivity gains from the internet revolution.
The NASDAQ Composite peaked at 5,048 but retreated orderly to 4,000. Capital continued to flow into fiber optics and telecom. Companies like Pets.com still failed, but Amazon and Cisco consolidated power faster.
With capital markets still open, broadband infrastructure was built out 3 years ahead of schedule. Streaming video and cloud computing emerged in 2003 rather than 2006. The Great Financial Crisis of 2008 was potentially exacerbated by an even larger tech-driven wealth effect masking housing issues.