The Role of Capital Market Intermediaries in the Dot-Com Crash of 2000.

The internet was being thought of as an economy and not a channel in the economy. The events of 2000 signaled the end of the internet bubble and marked the start of a real digital transformation in the economy. People mainly jumped on the internet bandwagon because of its fashionability. The internet is providing a powerful new business infrastructure, a universal information system for handling the transactions of the economy while bringing about radical new efficiencies …

…whose fault it was that the whole bubble occurred in the first place. Sell-side analysts came under attack in the media as did some venture capitalists, investment bankers and the accounting industry. They were all at fault because of the hype they placed in what should have been noted in the beginning as a fad. Reference: Palepu, K., Healy, P. & Bernard, V. (2004). Business Analysis & Valuation: Using Financial Statements. Ohio: Southwestern-Thomson Learning.