Stock Market Crashes Knowledge Base
Does anyone see similarities between current market conditions and stock market crashes of 1929 & 1990s? Does anyone view the recent stock market weakness in a similar light to crashes of 1929 & the 1990's tech bust. In the 1920s people were investing with money they couldn't afford through broker loans. The world markets heavily relied on the US market conditions which showed extraordinarily high p/e ratios. In the 1990's there was lots speculative buying based on the potential of success of the dot coms rather than based on success itself... Today I see similarities in that we have large volumes of borrowed funds in investment (margin loans etc), we have a market that seems heavily reliant on one area of the globe (that being the great expansion of the Chinese) and we have a large level of speculative buying within the Chinese markets with some phenominal p/e ratios and no solid history to back it up (but there's argument that potential is there).... What do you think?
If the stock market crashes what happens to the economy then? Years ago I took Economics in college and one of the trends was that the economy was never stable always up and down. That seems to be with the stock market? If it would come crashing down would the economy be as bad as it was during the Great Depression?
Is it true that every 10-15 years the stock market crashes? I asked a question about my simple IRA and some girl answered the question, in her answer she said that the stock market crashes every 10-15 years, is this true? I also am not asking for sarcastic answers...Im just asking a question, If you cant be nice then dont bother to answer.
Who gets rich when the stock market crashes? anytime there are people loosing money there are people getting outrageously rich. who is going to get rich when our stock market bubble bursts? traders who bet against stock growth? how do you bet against growth?
Can someone explain to me how and why the Stock Market Crashes? It's not like a car crash or a plane crash. What happened? Did some numbers fall off a board? What made it crash? I fully don't understand the concept. Why was there a precise moment of when the market crashed? Could someone explain this? In layman terms please. Serious answers only.
If the stock market crashes (and I mean CRASH BIG TIME) should we expect martial law throughout the USA? Yes, this is a hypothetical question, but I want to hear what others think about it. And please spare me the "Conspiracy" theories, comments...it is HYPOTHETICAL. They STILL have martial law in New Orleans 2 years after Katrina, so it isn't as if this current government is not afraid to use it. Dom, when has if the action is actually Constitutional or not ever stopped this administration? I don't recall Bush ever caring about laws or not. He has shown time and time again that he thinks he is ABOVE the law.
Stock Market: Do margin accounts and calls worsen crashes? Only answers from knowledgeable investors or traders, please. There is a crash. Market topples and margin accounts get close to their calls and broker sell - off points. Does this incur a secondary crash or an extended first, since the broker will automatically sell off all this extra stock and those who get called would rather sell than put in more money anyway? It seems that any diversified portfolio or mutual fund would incur roughly the same losses as the market, and closing margin accounts would continue the plummeting. What do you think? Thanks!
How did the stock market "crash"? I'm desperately trying to understand the stock market and the Great Depression, so my question is this: What, exactly, is a stock market "crash," and how did/does it happen? Explain this to me like you would with a mentally retarded first-grader.
Who else is looking forward to Obama causing the stock market to crash? He plans to raise the capital-gains tax from 15 percent to as much as 28 percent, which is nearly doubling it. This will cost investers of stock to sell it to prevent getting taxed at what will be the new high rate, once it gets passed. Once the stocks are sold, if no one buys it, the stock market will crash, isn't it awsome? http://www.adjunct.diodon349.com/Attack_on_USA/president_obama_and_the_coming_stock_market_crash.htm
Was the Smoot-Hawley Tariff a direct response to the stock market crash of 1929? Can the Smoot-Hawley Tariff in any way be looked at as a direct political response to the stock market crash of 1929, and if so where may I find sources that prove the fact? If the Smoot-Hawley Tariff was a response to the stock market crash, why were protectionist policies pursued? Is there a reason the US thought protectionist policies would be good for the economy?
How would a stock market crash affect aggregate demand? If there were to be a stock market crash, how would it affect aggregate demand? And what if there had been equilibrium employment (i.e. full employment) what could a government do or what policies could it introduce to restore full employment?
What happened/how did the stock market crash? I know that it caused the great depression but what happened that caused the Stock Market to crash?? was there any specific group of people that weren't effected by the crash?? could this happen again? THANKS
How do you feel about the stock market vs. the economy? I ask because I can't seem to understand how the stock market is going so great while the economy is in such a horrible state. The stocks are pushing 14,000 and the value of the dollar is getting less and less. The real estate market is hitting the dust. People are spending much more than they get. Foreclosures are running rampant. Unemployment is high. Last time this kind of thing happen, we ended up in the Great Depression. The stocks were great. The Roaring 20s were full of partying and pizazz. The 30s? People were living in shacks because the stock market crashed. Now, I may need to brush up on my history, but isn't this pretty much how things went? I don't think we're far from the same ordeal. Even if we don't hit a depression, things aren't getting better. I know there's an economic cycle, but it seems that we're not rebounding into the positive side. I can't see how things are going to get better. For those of you business scholars out there, maybe you can help me. I feel, though, that if we do hit another depression, it will be much, much worse than that of the 30s. Your thoughts?
How would you prepare for a massive stock market crash? You have 5 years advanced warning of a huge stock market crash. What steps would you take to make sure that you save everything you have invested? Would you buy antiques or gold? Would you avoid banks, pensions, gilds and shares altogether? This is all hypothetical but I am considering how to invest in the future...
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