What happened in 1999 and in 2000 to cause the sudden drop in household wealth and disposable income?

In 1999 and 2000, the U.S. experienced a significant economic shift marked by the bursting of the dot-com bubble, which led to a sharp decline in Stock Market valuations, particularly in technology and internet-related sectors. This resulted in substantial losses in household wealth as many individuals had invested heavily in these markets. Additionally, rising interest rates during this period increased borrowing costs, further straining disposable income for many households. Together, these factors contributed to a sudden drop in both household wealth and disposable income.