Stock markets are made to have their ups and downs. After all, the United States rebounded in the 1920s after a decade of depression due to what is recorded as the world’s first stock market crash, and for a brief moment in the 1980s, it was thought that the stock market in the United States and in several countries was not going to recover from another nosedive. Playing with the numbers is risky, even in a gentleman’s game like the stock market, and whether in Hong Kong or the NASDAQ, analysts have a hard time predicting exactly what will happen. However, one thing is certain: nobody knew what was coming in 2008.
No one has been more confused about recent events in the global economy than the many consumers in various countries. It really came as a surprise to people around the world when global markets began to crash in October 2008, mainly because after other near misses in the global economy, it is disconcerting to think that anything could go on for so long and end so badly. .
It’s no wonder that problems in the United States can bring down the global economy, especially when you look at the numbers. A significant part of the global economy depends on the US economy and markets. Several smaller countries did not have the pleasure of being bailed out by their federal governments, with countries like Iceland completely ruined simply because such a small country could not immediately bail itself out.
One of the reasons the latest stock market crash led to a global stock market crash is that the industry is now much more international than ever. Large corporations don’t just do business in one country: they are located on many continents, trade on more than one stock market, and generate huge revenue by conquering the global marketplace. Therefore, if investment and capital are linked on such a vast scale, it is not surprising that something that upsets the balance of one or two markets can continue to reverberate and have such a far-reaching impact around the world.
Part of the reason why the last crisis affected so many countries around the world is that instead of just investing in domestic markets, many different investors at all levels go out of the country to other markets around the world. With an already confusing regulatory business, it gets even more confusing when people work through international banking institutions.
While there are watchdog entities that are supposed to keep track of conditions in various world markets, recent events show that sometimes those watchdogs need to be watched as well. Especially after the near-dark slump of the late 1980s, when the United States vowed to put aside a path of excess and tone things down a bit, it’s shocking to see just 20 years later another difficult financial circumstance to navigate. Only this time, the rest of the world economy is coming with it.
The most recent mess was helped by people who immediately withdrew, without concern for local governments who stress the importance of the system keeping participants. Many banks in Europe and the United States collapsed or were on the verge of collapse, requiring extensive government bailouts that are hurting the economies of large nations and therefore the global economy as well.
While many people attribute their confusion about recent economic events to simply not understanding, the fact is that even those who do understand are surprised by the turn events have taken, and by how far markets were allowed to fall before for the government to intervene. in his speech. While playing the stock market used to be a hobby worth recommending, now is not a good time to start investing, regardless of whether the market turns bearish or bullish.