Business

Welcome to Irrational Exuberance Part Deux (aka the 2020 tech bubble)

Posted June 18, 2020 8:01 p.m. EDT

— Happy #ThrowbackThursday. If you're feeling nostalgic for the 90s, put on your Spice Girls playlist and get ready for some dated references.

WELCOME TO THE 90s.

The 90s are hot right now, even on Wall Street.

We're calling it Irrational Exuberance Part Deux, with a hat tip to Alan Greenspan, the former Fed chief who coined the term to describe the 1996 boom in the stock market — particularly the rise of big tech stocks and the wave of unprofitable internet IPOs. (Also big in '96: Tamagotchis, which have also made a comeback)

The 2020 tech rally is indeed eerily reminiscent of that late 1990s and early 2000s period, when the Nasdaq surged past the 3,000, 4,000 and 5,000 levels in a matter of months before finally peaking — and then crashing in April of 2000.

Look, we're not saying it's a bubble, it just looks like a bubble, and walks like a bubble, and talks like a bubble ... OK, it is a bubble. Like the Macarena — huge in '96, gone in '97.

CNN Business' Paul R. La Monica on what to expect this time around.

LORDSTOWN LOWDOWN

Back in 2009, Ohio gave GM $60 million in tax breaks just to keep the Lordstown plant, which employed more than 4,000 people, operating until 2027.

Unfortunately, that plant made the Chevy Cruze. When demand for that car cratered, GM began cutting jobs. It finally shuttered the whole plant last year.

And that $60 million incentive? Yeah, GM says it should just hold onto that cash despite coming up short by a full eight years on its promise.

Ohio needs the money more than GM does, but in a real headscratcher, the state may relent and let GM keep the money. CNN Business' Chris Isidore has the full story.

SPEAKING OF CRUISES...

We're all itching for a vacation from our homes right about now, but don't get your hopes up for a high seas holiday just yet.

The pandemic halted cruises world-wide, so it shouldn't be a shock that Carnival would post a massive loss in the second quarter.

And yet ...

The loss was so bad — $4.4 billion bad — investors expecting the worst were sill surprised, which sent Carnival's stock down 4% in early trading Thursday. It closed down 1.4%.

FACEBOOK TAKES DOWN TRUMP AD

Facebook took down ads by President Trump's re-election campaign that featured an upside-down triangle "practically identical" to the one used by Nazis, according to the the Anti-Defamation League

"Our policy prohibits using a banned hate group's symbol to identify political prisoners without the context that condemns or discusses the symbol," Andy Stone, a Facebook spokesperson, told CNN Business.

(The hate group to which Facebook was referring is Nazis, the company confirmed.)

BIG PICTURE: Facebook caught a lot of flack last month for its inaction on Trump posts that Twitter flagged for glorifying violence. It's also been in hot water more recently for letting extremist groups proliferate on its platform. Taking down an ad with a Nazi symbol seems like literally the least it could do.

THE CHOMES HAVE EYES

Google Chrome extensions downloaded more than 32 million times were used to spy on users in a massive global surveillance campaign, according to a new report.

At least 111 "malicious or fake" Chrome extensions capable of taking screenshots, stealing login credentials and capturing passwords as users typed them.

Google said it removed all the problematic extensions. Still, wow ...

CNN Business' Rishi Iyengar has more.

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