Stock markets are made to have their ups and downs. After all, the United States bounced back in the 1920s after a decade of Depression due to what is recorded as the first stock market crash in the world, and for a brief moment in the 1980s, it was thought that the stock market in the States and in a number of countries wasn't going to recover from another nosedive. Playing the numbers is a risk, even in a gentleman's game like the stock market, and whether it's Hong Kong or NASDAQ, analysts have a difficult time of predicting exactly what's going to happen. One thing's for sure, though: no one quite knew what was coming in 2008.
No one has been more confused about recent events in the global economy than the numerous consumers in various countries. It truly came as a surprise to people all over the world when global markets started tanking in October of 2008, mostly because after other near-misses in the global economy, it's mystifying to think that something could go on for so long and end so poorly.
The world stock market's value has been estimated at close to seven hundred trillion dollars, with the role of the United States economy in that market significant, at around forty trillion dollars. However, the last year or so has been a see-saw ride of recovery, with times looking up and times looking extremely dismal. Entire countries have been bankrupted through the cause and effect of foreign investments. Famously, the entire country of Iceland, a small island nation with only two or three national banks, managed to lose the entire country's savings just because of the faltering power of the dollar and the Euro in unison.
One of the reasons that the last stock market crash led to a global stock market crash is that industry is much more international now than ever before. Large corporations don't simply do business in a single country: they are located on numerous continents, trading in more than one stock market, and generating large revenue by conquering the global market. Thus, if investments and capital are tied in on such a wide scale, it's no wonder that something that upsets the balance of one or two markets could continue to ripple and have such a far-reaching impact around the world.
It's not just the economy, either. Many investment companies have recommended branching out from one's home country and trying various markets around the world. When the American dollar is the base of so many financial interactions and it starts to slip, it takes a whole lot of value and wealth along with it.
While there are entities in check who are supposed to be keeping track of the conditions of various world markets, recent events show that sometimes those watchers clearly need to be watched, too. Especially after the near-gloomy crash of the late 1980s, when America 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's come with it.
The most recent mess was further helped along by people bailing out immediately, with no concern for local governments stressing the importance of the system keeping participants. Many banks in Europe and the United States tanked or were on the brink of tanking, requiring extensive government bailouts that are doing their own personal number of large nation's economics, and thus, the global economy as well.
Playing the market has always been a little bit unpredictable, but the recent events are truly unprecedented. While regular people reading the newspaper might feel as though they have missed something significant in their inability to process recent current events in the financial sector, the fact of the matter is that it is baffling things were allowed to get this bad. - 31876
No one has been more confused about recent events in the global economy than the numerous consumers in various countries. It truly came as a surprise to people all over the world when global markets started tanking in October of 2008, mostly because after other near-misses in the global economy, it's mystifying to think that something could go on for so long and end so poorly.
The world stock market's value has been estimated at close to seven hundred trillion dollars, with the role of the United States economy in that market significant, at around forty trillion dollars. However, the last year or so has been a see-saw ride of recovery, with times looking up and times looking extremely dismal. Entire countries have been bankrupted through the cause and effect of foreign investments. Famously, the entire country of Iceland, a small island nation with only two or three national banks, managed to lose the entire country's savings just because of the faltering power of the dollar and the Euro in unison.
One of the reasons that the last stock market crash led to a global stock market crash is that industry is much more international now than ever before. Large corporations don't simply do business in a single country: they are located on numerous continents, trading in more than one stock market, and generating large revenue by conquering the global market. Thus, if investments and capital are tied in on such a wide scale, it's no wonder that something that upsets the balance of one or two markets could continue to ripple and have such a far-reaching impact around the world.
It's not just the economy, either. Many investment companies have recommended branching out from one's home country and trying various markets around the world. When the American dollar is the base of so many financial interactions and it starts to slip, it takes a whole lot of value and wealth along with it.
While there are entities in check who are supposed to be keeping track of the conditions of various world markets, recent events show that sometimes those watchers clearly need to be watched, too. Especially after the near-gloomy crash of the late 1980s, when America 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's come with it.
The most recent mess was further helped along by people bailing out immediately, with no concern for local governments stressing the importance of the system keeping participants. Many banks in Europe and the United States tanked or were on the brink of tanking, requiring extensive government bailouts that are doing their own personal number of large nation's economics, and thus, the global economy as well.
Playing the market has always been a little bit unpredictable, but the recent events are truly unprecedented. While regular people reading the newspaper might feel as though they have missed something significant in their inability to process recent current events in the financial sector, the fact of the matter is that it is baffling things were allowed to get this bad. - 31876
About the Author:
Damian Papworth loves stock market trading. It has become a big element of his work from home income.
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