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.
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.
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.
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.
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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 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.
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.
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That would in fact be a fun Minecraft session.