I hate this. In late 2000 I lost my job because of the dot-crash. Even though, as a non-believer in the “New Economy”, I’d been careful to work for a company that was private, profitable, debt-free and that had a CEO who also didn’t believe in a New Economy, the company ended up growing to take in the copious amounts of $$$ that dot-coms were begging us to take off their hands. (We did have to work for it.) So when the dot-coms got into trouble, so did we. I got axed in a round of layoffs but soon the whole company went under.
When a bubble bursts, everyone gets spooked and becomes reluctant to engage in even “normal” hiring and investing. It’s horrible and I’m not looking forward to a repeat of 2000/2001. Sure, “it’s different this time”: there are indeed some differences. But once mania/bubble psychology has set in, for whatever reasons, the result is inevitable.