When there is a stock market crash signaling a recession, stagflation, or severe depression, what we are experiencing is a sudden and very large drop in the value of stocks in the markets, causing a hasty sale of stocks and other securities by investors and some institutions. When the underlying value of the companies that issue the shares suddenly collapses, their price also falls proportionally and the resulting situation is the loss of much of the money that people invested and, in extreme cases, as in the Great Depression of last century, the loss of all your invested capital.
The hackneyed argument of the stock market as a capitalist den of speculators and millionaires is false. The indisputable reality is that there are countless small investors who have accumulated their life savings and invested them in stocks and that almost all citizens who have worked in the country have their pension funds invested in mutual funds and securities that pay substantial interest or dividends or in investment programs known as 401(k) that exempt them from taxes.
The serious problem for those who depend on these investments to have an additional income or a decent pension is when a market collapse occurs precisely when they have to sell some of these securities to cover unforeseen expenses or when their pension income is barely enough to cover essential expenses of their monthly budget.
What Causes a Stock Market Crash?
A stock market crash is caused by two circumstances: a dramatic drop in stock prices and the resulting panic. Here's how it works: Each of the shares owned represents a small stake in a company, and the investors who buy them make a profit when the value of their shares increases or when they receive interest or dividends approved by the company's board of directors. The price of these shares depends on the opinion of the majority of investors at that time about the value and future prospects of that company. So if they think the company they're investing in is headed for tough times, they sell those stocks in an attempt to exit before their value falls.
The reality is that panic plays as much (or more) a role in a stock market crash than the actual economic problems that cause it. There is an obsessive reaction that irrationally drives scores of investors to dump their shares at whatever price they can get, and the market plunges into a full-blown crash.
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them, we drink them and we breathe them.
La deuda nacional de Estados Unidos ha sobrepasado ya los 28,7 trillones de dólares (billones en español), lo cual equivale a más de 227 mil dólares por cada contribuyente. Para colmo, el déficit presupuestario superará este año con creces todos los records anteriores (incluso los de tiempos de guerra) por un total de casi 3,2 trillones de dólares, lo cual hará que suba considerablemente el nivel de la deuda. Este déficit representa alrededor del 40% del presupuesto federal, el cual debería reducirse en esa cantidad para equilibrarlo. Por el contrario, se están pasando leyes que añaden gastos por más y más trillones de dólares que el país NO TIENE. Esto significa que el Tesoro deberá expedir más dinero y más instrumentos de deuda, a la vez que idea nuevas fuentes de ingresos impositivos, como ahora se está barajando el de cobrar impuestos a los automóviles según el millaje que recorran cada año.
trillones de dólares que se van sumando a una enorme deuda que le iremos dejando a nuestros hijos, nietos y bisnietos, y que ya nos está afectando con la devaluación del poder adquisitivo del dólar y la resultante inflación.
investigación –como el reciente Informe sobre Desarrollo Humano de 2020–, para los cuales, con frecuencia, se ven obligados a depender de los datos que proporciona el gobierno de países que no son democráticos y suelen impedir u obstaculizar cualquier intento de investigación para comprobar la validez de los datos recibidos.