Categorized | News

The Great Recession Part 2: Y2K Fallout

As we saw in Part 1 of this series, few if any predicted the sudden and absolute drop off in sales that happened on 1/1/2000. Most expected the trends to continue upwards, or worse case, level off. But people just quit buying.

The Dot Com revolution ended and companies that looked great on paper began to falter as investment dollars stopped flowing in and stocks fell. Suddenly, the next wave in retail and the internet revolution was gone. A few actually did have a winning formula. E-Bay, Amazon and a few others were actually viable ventures and survive today. But the losers piled up as did the losses.

Stock prices declined and companies began reorganizing the sales forces, still in denial that the one time phenomenon that was Y2K was gone, never to return. But companies were able to hold on due to the large cash reserves many had on hand, but for how long?

Even though the economy was in decline, it was largely hidden by the superheated sales of the late 1990’s. In the closest election in US history, legal maneuvers kept the country from seating a new president, adding to the uncertainty.

President Bush pushed through a set of tax cuts in 2001 to get the economy moving again. And in spite of the economic blow from 9/11, the tax cuts worked and the economy began to grow. The Y2K recession had finally run it’s course and we leveled out. The Dot Com bubble burst, and things were finally on the mend.

But were they really on the mend, or had the storm evolved into something else?

Part III in the series will examine where all the excess Y2K money went.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

2 Responses to “The Great Recession Part 2: Y2K Fallout”

  1. Aria Smith says:

    during the height of the economic recession, our online and offline business in the US have suffered some major drop in sales. now our sales are getting slowly back to normal.


Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge

Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

Sign up for Virginia Right Once Daily Email Digest

No Spam - ever! We send a daily email with the posts of the previous day. Unsubscribe at any time.
* = required field

Follow Us Anywhere!