The first “new economy” was the Dutch “tulip mania” in 1637. There was joint stock company madness in London a century later, investor obsession with rickety railway ventures in the mid-nineteenth and an assembly line revolution in the 1920s. Crash, crash, crash, crash.
It is too early to say whether the 1990s “new economy” bubble is bursting or just subsiding and thus what economic effect will follow. But the weekend’s turmoil is a reminder of our vulnerability to overseas events.