The first similarities are the speculative investment that led to the formation of bubble. During the dotcom boom, many new companies were created based upon the internet, but without the solid fundamentals. It led to the failure of most of the companies. In real-estate boom, price of the real-estate escalated quickly on the basis of speculation based trading. The second similarity is the lack of sound regulatory framework to control the industry. Internet driven industry was new and the regulations were still in formative stage, it led the companies to take undue benefits and attract innocent investors. I case of real estate boom, the financial industries came up with new financial instruments for risky assets, subprime lending by bypassing the laws that affected the investors. The third similarity is the loss of jobs in the economy. Dotcom bust made many people unemployed and it also happened when real estate bust took place.
There are differences also. The first difference was the impact. The impact of real-estate was very large and more global in nature. Many industries in the USA got affected apart from the different economies in the world who were doing business with the USA. The dotcom impact was not so big and limited to the technology sector only in most of the affected countries. The second difference is the recovery. It was more difficult to recover from the recessionary effects of real estate burst.
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