Stock market crash

While these early Amazing Stones pieces raise the possibility that transmutation might affect economic or monetary issues, they do not grapple with the possible consequences in any sustained way. Yet the stock market crash in... 

Thesis statement The Great Depression was caused neither by the stock market crash of 1929 nor the Smoot Hawley Tariff Act. 

In this essay, I would like to consider why the Great Depression occurred. Some people contend that it was caused by the stock market crash of 1929. Many economists point to the Smoot Hawley Tariff Act as the real reason. However, there is strong evidence to suggest that neither of these factors caused the Great Depression. 

An obvious objection to these claims is that, in the face of unemployment, stock market crashes and the tike, it is wildly implausible to say that people are making correct guesses about what will happen. Surely, these consequences cannot have been fully foreseen. Rational-expectation theorists respond by saying that anticipations are more complex. People do not anticipate future events as if they were certain to happen. Rather, they form probability estimates over the many future events that can happen. These estimates are rational, in the sense of taking account of all available information and not being subject to systematic... 

For investor protection, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. These acts provided government oversight on U.S. capital to prevent the kind of fraud that had resulted in the 1929 stock market crash. In 1934, Congress established the Securities and Exchange Commission (SEC) to enforce the new laws and to provide stability for U.S. capital markets (United States Securities and Exchange Commission, 2007). 

As the stock market crash of 1929 was known as Black Friday, the 1987 crash saw the largest one-day percentage drop in value in history. 

In 1933, Kennedy was appointed by President Franklin Roosevelt to head the new Securities Exchange Commission. Kennedy s earlier association with the London banking circles had put him in the inside track to conduct a flurry of stock speculation on the eve of the 1929 stock market crash and walk away from it all with a pocket full of cash. When the SEC was created to regulate the market, Roosevelt returned Kennedy s 1932 favor of swinging the Boston Democratic machine behind the FDR candidacy at the 1932 nominating convention. 

Stock market fluctuations cause major distortions in the relative valuations of companies. Not so. Even in highly turbulent markets, the relative performance of stocks remains remarkably stable. Eor example, both before and after the 1987 stock market crash, the ratio of the market values of pairs of companies from the same industry (such as General Electric and Siemens, DuPont and Bayer, and General Motors and Volkswagen) did not change by more than 10 percent, despite the steep fall in the total market valuation. 

I remember that we had happy years on Riverside Drive. The Vitaphone job was steady so the stock market crash in October of 1929 had absolutely no effect on us. My father never owned a stock, and even if he had, he never would have bought on margin. But movies still went on diuing the depression and Vitaphone produced a short subject every week, which was written by my father and collaborators. Although Vitaphone paid well, he never liked the grind of mass production and he had a low opinion of the literary talents of his boss. Once, in frustration, he told the boss he couldn t produce a decent script with such strict time limits and that if he had an extra day or so he could do much better. The reply became another family saying. I don t need it better, I need it Tuesday, said the boss. 

A 1982 Gannett poll showed that newspaper readers rated natural disasters and tragedies as most popular, with local and national economic stories as second and third. Stories about the environment, energy or conservation ranked seventh. There are no risk stories in the top ten, not the risk of economic depression or even the risk of an air diaster. The news is the actual stock market crash, or hijacking. Even a meeting is more likely to be considered news than is a risk story. 

My friends, both in Pasadena and in Berkeley, were mostly faculty people, scientists, classicists, and artists. I studied and read Sanskrit with Arthur Ryder. I read very widely, mostly classics, novels, plays, and poetry and I read something of other parts of science. I was not interested in and did not read about economics or politics. I was almost wholly divorced from the contemporary scene in this country. I never read a newspaper or a current magazine like Time or Harper s I had no radio, no telephony I learned of the stock market crash in the fall of 1929 only long after the event the first time I ever voted was in the Presidential election of 1936. To many of my friends, my indifference to contemporary affairs seemed bizarre, and they often chided me with being too much of a highbrow. I was interested in man and his experience I was deeply interested in my science but I had no understanding of the relations of man to his society. 

Somette D (2003) Why stock markets crash critical events in complex financial markets. Princeton University Press, Princeton, NJ... 

If an annual accounting of your personal professional assets reveals a loss or no increase in value, you have experienced a personally devastating stock market crash. You have lost a year of growth and increased contribution, neither of which can ever be redone or perhaps regained. As a result of mismanagement of your professional personal equity, you have failed yourself, dependents, your employer, your clients, your profession, and society. 

The time between major stock market crashes in the years 2009-2015 can be described by gamma distribution. The time in days for one major stock market to crash will occur within 360. How many days can one expect to pass until the fourth stock market crash ... 

The time x until the fourth stock market crash will follow a gamma distribution with a = 4 and b = 360, and so E(X) = ab = 4x 360 = 1440 days. ... 

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