I’m just beginning to understand economic world and as a beginner I would like to know what were the actual reasons of markets being crashed in 90s? And what exactly is meant by the term ‘markets crashed’ …?
Thank you!
Re: Can anyone tell me, please??
'depression'wen the investors lose confidence in the markets ie they stop investing money halting economic growth,then no more jobs.
Re: Can anyone tell me, please??
Business run in cycles. From recession to progression. Looking at a pattern it happens every 10 years. We are slowly understanding it and trying to minimize "difference in progression and recession". The key is slow and steady. Don't let anyfin grow too fast - and it will not go into recession too fast.
Anyway, recession happens for many reasons - from simple as Supply VS Demand changes, as well as wars (also a biz). It all depends on each other - eg. People mood to spend more > to flourish buisnesses > to business expanding > to help gov't > to get jobs > people get financially stronger > their mood improves to spend more
Market crashed was also for many reasons - one being grew too fast and created a bubble. Conservatives came into power (canada) - they save money even at the cost of people services such as health care. ....
Re: Can anyone tell me, please??
One of the reasons for market crash in the late 90's was the crash of the dot com sector. Seeing that some people are making money pffering websites, domains and not having to deal with a physical structure, everyone jumped on the bandwagon, and as someone mentioned above--bubble.
And now you know there arent many big profitable sites around --except amazon, yahoo,ebay and google.
And tons of people who had bought IT stocks in those days were left to cry for it...
Just like now, in the US, there is housing bubble which mant fear would burst in the near soon.
Re: Can anyone tell me, please??
I dont know if Im right or wrong but I think the wall-street crash occured because pessimistic perdictions led to a huge number of people selling their shares and thus a decrease in prices of shares.
Correct me if Im wrong (I probably am...) :D
Re: Can anyone tell me, please??
no ur right.. people feared that stocks would tumble (which they did ) and market crahsed
much like what happend in tokkyo when they had to shut down their stock exchange due to overload of trading
(i might be wrong in first para myself)lol