Times are hard. But is the world economy turning into a Depression? My opinion, no. I believe what goes up must come down. Everything bounces back right? Stocks go up and down all the time. So why in this cartoon, are people worrying so much? One thing, misinterpretation. Everybody in the world misinterprets things all the time, but that's not just a bad thing, it could also be a good thing too. Why? Well, for one thing we learn from our mistakes all the time and learn to take caution towards those same issues in the future (well, currently not so much, our government can't learn to stop bailing out all these companies, especially AIG).
Now, back to the cartoon. It displays, mainly the stock market, and how the stock prices can rise and fall in an instant from careless thinking of CEO's to the little guy, the stockholder. The cartoon goes from a calm perspective when the stock market doing just fine, until someone brings up a fact that may or may not be harmful to the opinion of the of the shareholders keeping or selling their stocks. And when they are harmful the stocks could plumet or rise in value because of the buying or selling of their stocks. This could also turn into panic as seen with the last man on the right yelling "SELL! SELL!", but it's not very probable unless you have your entire life savings in stocks.
This cycle of ups and downs is commonly known as the Business Cycle. It operates and is controlled mainly by the levels of GDP, inflation, unemployment, and many other factors. Currently the US would be categorized as in a period of Recession, where the real GDP has been in decline for at least six months. Hopefully, as the DOW seems to be going up in the last few days, we'll overcome this Recession and hit the recovery stage of the business cycle and then the peak, to benefit the economy.
Now, back to the cartoon. It displays, mainly the stock market, and how the stock prices can rise and fall in an instant from careless thinking of CEO's to the little guy, the stockholder. The cartoon goes from a calm perspective when the stock market doing just fine, until someone brings up a fact that may or may not be harmful to the opinion of the of the shareholders keeping or selling their stocks. And when they are harmful the stocks could plumet or rise in value because of the buying or selling of their stocks. This could also turn into panic as seen with the last man on the right yelling "SELL! SELL!", but it's not very probable unless you have your entire life savings in stocks.
This cycle of ups and downs is commonly known as the Business Cycle. It operates and is controlled mainly by the levels of GDP, inflation, unemployment, and many other factors. Currently the US would be categorized as in a period of Recession, where the real GDP has been in decline for at least six months. Hopefully, as the DOW seems to be going up in the last few days, we'll overcome this Recession and hit the recovery stage of the business cycle and then the peak, to benefit the economy.
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