Some Theories On The Stock Market Crash

There are countless theories on the stock market crash. Though logically, we know that the actual reason would not be a simple, single fact, we look for one anyway. The crash of the stock market is attributed to layering reasons, each more complex and profound than the reason before. But why did the stock market crash? On the surface, it would appear to be a single person or entity, a rumor or flaw in the system that caused the downfall. But in order to find out the real reason, we have to look deeper. We have to why an economic system that is supposed to be so strong could be so vulnerable in the first place. Why did the stock market crash? Market inflation is rampant, with countless causes. These causes, such as tax cuts for the rich and the cheerleading from people in top authority that fabricate reasons for the market to increase, allow us to be righteous and partly right. But they don't explain why these forces flourished now, but not in previous decades, when the greed and short-sightedness that make it bloom now were just as inherent in human nature then. To find out, we have to look even deeper. Why did the stock market crash? The most fundamental cause of the stock market crash is the one we least often want to admit. Economic ups and downs. Panics, booms, and depressions that regularly happen, no matter where there was an SEC or an FDIC. No matter whether or not computers did the trading or people. No matter where there was a federal deficit or a certain party was in power. In every part of the industrialized world, these things happen. We are told that the free market guides the economy without the need for government interference. But the free market system is inherently unstable. It oscillates with waves of change that go from financial stability to creating panic. These waves are inevitable, thanks to supply and demand, shortages and surpluses. A huge economy cannot bring itself to a prompt supply-demand balance. Our economic system could be the deepest cause of the crash yet. In order to understand this, stabilize it, and bring it to some sort of control, imperfections must be admitted. Informed, regulated free enterprise would be created. There is no way to easily label business or government as either bad or good. The right balance must be found. There is no simple, straightforward answer to the question: "why did the stock market crash?" There are only theories, and before the true answers can be revealed, we must find the balance between business and government, and stabilize and control our economic system.

Discuss It!

Most Popular Articles

More