Why Is The Stock Market Crashing Like It Is?
I've just been trying to understand all that's going on. No one has been able to explain it to me though.
4 Answers - Sort by: Date | Rating
It is an odd thing; the market depends on consumer confidence, so in this way it's very much about what people will believe will happen, rather than what is.
If people believe there is reason to be afraid, they withdraw investments, which causes the economy to be depressed. If people continue to operate with confidence, however, the dollar (yen/Euro, etc) continue to hold value. Because we are on a system of fiat money, and no longer on the gold/silver standard (which is the system whereby all money has an actual redeemable value of trade-able goods, like gold/silver, etc.), the entire economy is based n the speculation and confidence of consumers. There has not been the goods/commodities to back the dollars of the world economy (like gold, silver, platinum, etc.) for at least 100 years Media is very critical in this economy.
So the entire economy is based in consumer confidence/speculation of success, rather than trade-able hard goods, and it is as fickle as people are.
Hope this helps.
If people believe there is reason to be afraid, they withdraw investments, which causes the economy to be depressed. If people continue to operate with confidence, however, the dollar (yen/Euro, etc) continue to hold value. Because we are on a system of fiat money, and no longer on the gold/silver standard (which is the system whereby all money has an actual redeemable value of trade-able goods, like gold/silver, etc.), the entire economy is based n the speculation and confidence of consumers. There has not been the goods/commodities to back the dollars of the world economy (like gold, silver, platinum, etc.) for at least 100 years Media is very critical in this economy.
So the entire economy is based in consumer confidence/speculation of success, rather than trade-able hard goods, and it is as fickle as people are.
Hope this helps.
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Guest
answered 1 year ago
Well I have a better picture of it. But what caused the US specifically to drop so many points last week?
The media reports the economic status as spun by the political parties in power, and if you tune into and believe the news of the economy as a consumer, we understand from the media and political powers that be that we are all going to our economic demise.... Last week was the big "hoorah" about the bailout--another politically motivated move. Perhaps the truth is that the middle class has been struggling like this for many years in this same situation--but now it's about the banks that the politicians use for their own purposes to uphold their economic policies. The truth is more likely that while we ARE affected by these scheisters; the public hears about it in the media, and maybe somewhat with the mentality of cattle, are made to be afraid that this is some new phenomena (when indeed it is not at all new to the middle class--we have been feeling this pressure for some time, haven't we?)...
Consumer confidence, largely because of this media/cattle mentality--was reduced, and people started pulling their investments in the public market, and that was largely the reason for the decrease last week- reduced consumer confidence.
Consumer confidence, largely because of this media/cattle mentality--was reduced, and people started pulling their investments in the public market, and that was largely the reason for the decrease last week- reduced consumer confidence.
Guest
commented 1 year ago
That's very true
Well you will hear reasons of all sorts, but if you want the truth here it is. The real reason is because the globalist that really run this world have tried for decades to make the U.S. buckle. What they have done in the past is senseless compared to how they are doing things now. You see, 9/11 was a catalyst for these future events, these people have learned how to plan out things years in advance. First they cripple our airlines w/911 and use it as a reason to install a national security act. Then they hike up prices abroad, from interest rates to gas, then the stock market gets its turn in the shitter. The reason is they need us to feel as low as we can, as weak and pathetic. They know if things get really bad our society crumble from within, in fact they are betting on it. Be ready, because this is just the beginning.
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Wow it's scary but inevitable huh? Thanks for your explanation
Don't mix opinion with fact my friend. Bad debt along with banks not lending to each other and you have a domino effect on the global economy.
I think our society is based on consumerism, its a sad fact since money is worshiped so much that peoples lives are being sacrificed for a 'profit'.
But generally i think that the corporations are dependant on the banks, and the banks are dependant on us, we pay so much interest/finance that there are millions of extreme cases where people are paying off life debts, its insane.
But lately (the last decade) people have been smartening up on a broad scale despite what the national credit records say, there is less inequity dollars going to the businesses that thrive on finance (car dealers, banks credit) and that is making alot of corporations that are fundamentally dependant on the practice of ripping people off, scared.
An example.. I live in Australia and we have a GE Money building here that is being run from America, this building is a HQ for all of GE's interest scams, for example, GE wizard home loans, car loans, 10 different types of credit cards and all the rest of it. Why would they move abroad with such a huge investment to our country? Because people in america arent buying it anymore. They are expanding their market because they have to.
I totally agree that the intangible value of products is whats slowly being pushed in by the media. The less debt people are in, the less safer big corporations feel about the future, and with that there is more dependance on the banks to make them feel safe, so the banks are being niggardly and the general populations are feeling the pinch, we dont have to pay more for all these products that have higher prices, theres plenty, its just the corporations making more than they need to and its finally biting them back on the ass. I just hope small businesses can get back in to the game and increase competition so we can pay less for things that should be half the price fo what they are now.
I just hope to present my perspective, as broad as it is. :)
But generally i think that the corporations are dependant on the banks, and the banks are dependant on us, we pay so much interest/finance that there are millions of extreme cases where people are paying off life debts, its insane.
But lately (the last decade) people have been smartening up on a broad scale despite what the national credit records say, there is less inequity dollars going to the businesses that thrive on finance (car dealers, banks credit) and that is making alot of corporations that are fundamentally dependant on the practice of ripping people off, scared.
An example.. I live in Australia and we have a GE Money building here that is being run from America, this building is a HQ for all of GE's interest scams, for example, GE wizard home loans, car loans, 10 different types of credit cards and all the rest of it. Why would they move abroad with such a huge investment to our country? Because people in america arent buying it anymore. They are expanding their market because they have to.
I totally agree that the intangible value of products is whats slowly being pushed in by the media. The less debt people are in, the less safer big corporations feel about the future, and with that there is more dependance on the banks to make them feel safe, so the banks are being niggardly and the general populations are feeling the pinch, we dont have to pay more for all these products that have higher prices, theres plenty, its just the corporations making more than they need to and its finally biting them back on the ass. I just hope small businesses can get back in to the game and increase competition so we can pay less for things that should be half the price fo what they are now.
I just hope to present my perspective, as broad as it is. :)
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The stock market crashes because the economy is bad. There aren't enough jobs to go for all the people and it makes every thing bad. Inflation
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