The Nasdaq Technology Index lost 0.8 percent and closed trading at 2657 points.

The analogy to the Internet, the new economy, and the crash of the NASDAQ is straightforward.

Popular equity investments, such as shares in Safaricom, are already trading at unexpectedly low levels.

At this low price, companies have little incentive to cut back on their CO2 emissions and little faith that a market based incentive will return.

Agent metaphors describe price movements as the deliberate action of a living thing, as in, The NASDAQ climbed higher.

The NASDAQ crash was the result of realization by marginal investors that the odds were heavily against this.

CAMBRIDGE Despite NASDAQ crashes and the threat of US recession, the New Economy is here to stay.

The stock market has fallen big, by around half since March in the high technology NASDAQ market.

The S P 500 has surpassed pre 2008 levels, with companies shares trading at 18 times their earnings.

The Greek government currently must pay 25 for its ten year bonds, which are trading at a 50 discount in the secondary market.

Conventional wisdom holds that the NASDAQ crash exposed the new economy as a conjuring trick of smoke and mirrors. It incarnated the irrational exuberance that often breaks out as a boom peaks and did not deliver deeper permanent changes in the economy.

Permits that used to sell for more than 30 per ton before the crisis now trade for under 10.

Like the Nasdaq s high tech high flyers, the nagging questions about the euro are these what is its fundamental value?

But the NASDAQ crash tells us next to nothing about the future of the underlying technologies, or about their true value.

NASDAQ's crash and the worldwide slowdown which followed caused many to think that the much vaunted IT revolution was merely another speculative bubble.

Since its introduction, the euro has fallen further from its peak then even the Nasdaq in the high tech sell off of earlier this year.

What does the crash of the NASDAQ (and of smaller IT exchanges around the world) tell us about the future of the new economy ?

But then the NASDAQ index fell 22 over the following year, although the Fed continued to cut interest rates aggressively.

A second cause lies in the fact that fixed income assets such as government, corporate, and emerging market bonds are not traded in more liquid exchanges, as stocks are.

Does that experience suggest that the NASDAQ index will drop sharply if the Fed raises interest rates on June 30?

Some institutional investors are part of publicly traded firms, and are consequently under the control of corporate insiders whose interests are not served by new constraints.

630 shares finished up, 1913 down and 82 unchanged on the Nasdaq on turnover of 1.38 billion shares.

In doing so they have designed and produced logos and illustrations, shoes, and fashion for the likes of Nike, Adidas, Lamborghini, Coca Cola, Stussy, Sony, Nasdaq, and more.

In addition, depending on their relationship with their own investors, some institutional investors (for example, mutual fund managers) may capture only a limited fraction of the increase in value of their portfolios as a result of governance reforms.

In contrast to corporate insiders, institutional investors cannot charge the costs of lobbying to the publicly traded companies whose investor protection is at stake.

The New Deal created an image of a commercial transaction, like the buyout of a company or an incentive package for executives something that contracting parties bargain over and agree to.

The dotcom, ironically called Snowball, was the very last consumer web company to go public the next month before NASDAQ exploded, and I entered 18 months of business hell.

Our modern computer and communications technologies simply make it too cheap and too easy to distribute a competing product. So, what NASDAQ's crash tells us is that the new economy is more likely to be a source of downward pressure on profit margins than of large, durable quasi_rents.

Germany and France as de facto leaders of the European Union are haggling over a belated support package, but they have made it abundantly clear that Greece must slash public sector wages and other spending.

For example, the NASDAQ stock price index made a spectacular 14 jump upwards on the day (January 3, 2001) when America's Fed began its latest series of interest rate cuts.

It is commonly assumed (but nobody takes big bets) that the Nasdaq still carries major downside risks while the euro, sooner or later, must return to normality, whatever that means.

These new stock exchanges, modeled on America's NASDAQ, ended up listing a lot of flimsy companies, and the collapse of share prices since 2000 caught them in the downdraft.

To be sure, the challenges facing the world's economic policy makers during the next several years will be different from those that they have faced since the collapse of the NASDAQ bubble.