In the end, the bubble burst, but not before huge sums of money had been spent on new (and subsequently unneeded) capacity. The ultimate fallout was severe, especially in segments of manufacturing that had geared up to satisfy the anticipated demand for high-technology products. The bursting of the bubble wiped out significant amounts of financial wealth, prompting adjustments throughout the economy.
Firms slashed payrolls, and capital spending projects were abandoned. As with the process of adjustment to the 1990 credit crunch, a long period of time has been required to get employment and capacity back to more viable levels. And some industries - such as telecommunications - still appear to be struggling.