One of the BIGGEST boosts to the HUGE economic activity in
the 90's was a reduction in interest rates, especially for home mtges that in some cases were as high as 12%, but the average was more near to 8% & 9%.
I KNOW< cause I was right in the middle of the adjustments working as a mtge broker from about 1990 to early 93, when that run ended. WE GOT MOST HOME OWNERS refinanced mtges in the 4 to 5 % range thus FREEING up billions if not trillions due to lower mgte payments for nearly every home owner in the US.
THAT $$ had NO place to go other than IRA'S, 401K's, and other investments that BOOMED during the 90s thus leading to the DOT COM explosion. THAT was another thing that FUELED the boom with Y2K, and the fear of A TECHNICAL implosion using OLD- outdated PC'S-
NOW WE HAVE THE INVERSE of the above DUE to the IMPLOSION of HOME prices, & monstrous numbers of
foreclosures + owners walking out of recently purchased homes due to upside down values verses debt.
ITS FOR SURE WE HAVE NOT SEEN THE END OF THIS MONSTER, and the WORST IS STILL coming.
PROTECT YOUR PORTFOLIO