Economic Challenges Post Dot-Com Bubble

In the late 20th and early 21st centuries, various economic challenges significantly impacted the social and political landscape of the United States. One of the most notable events was the dot-com bubble in the late 1990s, which ultimately burst in 2000. This period was characterized by rapid growth in the technology sector driven by widespread speculation. However, this speculative frenzy led to substantial financial turbulence when the bubble burst, prompting discussions about the sustainability of such economic practices.

Which phenomenon primarily contributed to the economic instability following the dot-com bubble's burst?