The dot-com bust of the late 1990's/early 2000's and the financial meltdown of 2008 are both examples of which process gone "awry" in a system?

Question

Quizplus · Accepted Answer

The dot-com bust and financial meltdown are both examples of deviation-amplifying feedback gone awry. In both cases, there was excessive growth and speculation, fueled by optimistic beliefs and incentives that did not reflect reality. Eventually, this led to unsustainable levels of debt, overvaluation, and uncertainty, which caused a cascade of negative events that cascaded through the system and triggered mass sell-offs and bankruptcies. This is a classic example of a positive feedback loop that becomes self-reinforcing in a destructive way, ultimately leading to collapse.

The Dot-Com Bust of the Late 1990's/early 2000's and the Financial