They just called 2008 "global financial crisis"? What are they going to call the next one? "Ultra global financial crisis? " :biden-troll:
First Financial Impact
Second Financial Impact
Third Financial Impact
Fourth Financial Impact
Another Financial Impact
:shinji-screm: :doomjak:
They used recession for a while to avoid saying depression, which was in turn a way to soften what they were previously called: panics. We are just going to get more and more euphemistic until the Great Woopsy of 2040
They used recession for a while to avoid saying depression
Recession and Depression have specific technical definitions, relative to annual change in GDP.
We haven't seen a real Depression since the 30s thanks to Fed :brrrrrrrrrrrr: Policy. But with Inflation being the modern economic Boogeyman, we may be reaching the point politically in which national leadership is willing to obliterate domestic capital in hopes of protecting international trade.
They got bored of calling them "panics" in the 1900's but I think it's a more fitting name since they cause exactly that.
dotcom was twice the GFC? yeah that's, wow
also can we kill the moneyed folk now or
This is from the NASDAQ, which mostly contains technology stocks. It makes sense that those would be comparatively insulated from a finance/real estate based bubble, but more impacted by technology bubbles like dotcom and crypto.
So I'm a little confused. Is this the crypto implosion as part of this crash, or are those two crashes. Also, why do I just not care about this one? It just doesn't seem to affect me at all. I remember 08 having effects and I was little at the time.
Stock crashes don't have to reflect slowdowns or recessions in the economy, although a lot of the market seems to be predicting we'll see a big slow down within a year or two.
Events like the 2008 crash and the early COVID crash coincided with major layoffs and rises in unemployment, whereas what's going on now is for now mostly just a selloff of stocks investors are afraid of what around COVID, inflation, and the war in Ukraine.
We're still in basically the hottest labor market anyone has seen in more than a decade, and this is part of the reason the fed is so interested jacking up rates in cooling off the economy, because they don't like it when labor's bargaining power starts to increase in this sort of situation.
Investors are worried that these moves to cool off the economy, along with everything else going on in the world right now, are going to cause a real recession which is why there's been a sell-off in stocks in the last month.
The crypto implosion is not something I can really explain well - they may be linked in the sense that crypto investors are getting spooked by stock devaluations (and vice versa), but whereas stocks ostensibly represent some sort of real economic activity going on or that people expect to go on, the value of crypto is basically entirely down to speculation and hype. You can see a crash any time people stop believing in that hype, but you can't really predict when that happens.
Is this the crypto implosion as part of this crash, or are those two crashes.
The whole tech sector has tanked. Amazon lost a third of its value in a few months. Bezos somehow managed to come out of this worse than Musk.
I'll say economics is not my strong point. I hope I don't embarrass myself by showing I don't understand the word "household" in an economics context. I think it means stuff that's mostly owned by regular people. In the 08 crash - a huge amount of household wealth was destroyed. I think the number was $17T.
Ninja edit
This info is off a very old Treasury .gov page that's now dead...
The housing downturn, financial market crisis, and job losses were major setbacks for U.S. households. On net, household wealth fell by about $17 trillion, or 26 percent, from its peak of $66 trillion in the second quarter of 2007 through the middle of 2009.
Food and gas are a little more expensive, but it's a small price to pay to see some fatcats get their comeuppance
I disagree. Increases in food and gas prices can represent a heavy toll on working class families. This fluctuation in stock prices represents very little change in the material reality of most capitalists.
Oh, absolutely. But they were gonna do it anyway. I just hope they had to sell off one of their five vacation homes in the process.
Why is the global financial crisis so low relative to today? Are the values of individually-owned homes not reflected in these numbers, just stock values?
Early Crypto had the right idea-- the whole point of it was to create a secure system of trust in currency trade to circumvent parasitic big banks.
Once Big Capital started to see 👀 the idea gaining traction, it became a race to exploit and co-opt the movement into the narrative you see it as today.
Not really, "early" crypto was also a ponzi scheme that only libertarians can consider a "currency". Its a financial asset, and it was designed to become as stupid as it has become
I do wonder if there's a point where other markets pull a Japan and kind of fall into a semi-permanent stagnation. The Japanese stock market dropped massively during the late 80s crash and spent the 90s and 2000s pretty flat, and it still hasn't gotten back up to its heights from 30 years ago.
If your retirement isn't supposed to be in the next 10 years I would ride it out. Impossible to predict whether any banks might go under though, however they seem better prepared compared to 2008.
impossible to predict whether any banks might go under
We bail them out now, and they know it. It will just cause worse inflation, but the banks will still be there one way or another. They'll sell the loan and we get to keep being wage slaves
