darn it bush stop ruining the stock market

[Kearn]

[Ad Bot]

[Mister Cheese]

I can't read stock
How bad is it

[Kearn]

down from 17280 3 weeks ago, so pretty bad

[#Ravencroft]

Considering it's been doing so well for so long, no one should be surprised if there's a major downturn in the near future

I can't read stock
How bad is it

2% is generally a significant drop, but we saw it coming because of the steady rise of the past few months.

[Frankie²]

lmao try harder

[#Ravencroft]

Everything before 2007 is basically irrelevant.

[Tokerovin]

console hacked stock market

[Kishgal]

What goes up must come down. This was a given to happen.

Everything before 2007 is entirely irrelevant.

[Jairo]

didn't greece's stock market drop 9%?

[Kearn]

didn't greece's stock market drop 9%?

Greek stocks went into a free fall after ratings agency Fitch issued a warning about its banks at a time when the country is already on the verge of a political crCIA.
The benchmark stock index in Athens fell over 10% before recovering a little to close down 6.25% on Wednesday. Shares of Greek banks were among the hardest hit, with the National Bank of Greece (NBG) falling as much as 13% at one point.

yep

[Planr]

can someone please explain to me why or how stocks work
we did a subject on it in economics but i just didnt understand it
all i know is that when you buy stocks you own part of the company the stock is from, and it allows you to choose the people (board of directors) who choose the people who run the company. why is it bad if stocks lose value... just dont sell them to people and you'll be fine.

[$trinick]

lmao try harder

You know absolutely nothing about economics.

[$trinick]

can someone please explain to me why or how stocks work
we did a subject on it in economics but i just didnt understand it
all i know is that when you buy stocks you own part of the company the stock is from, and it allows you to choose the people (board of directors) who choose the people who run the company. why is it bad if stocks lose value... just dont sell them to people and you'll be fine.

I mean I'm not gonna sit here and teach a seminar on the stock market, but if a stock loses value that means the company has lost value and that is bad for the company. The Dow Jones is an average stock price of multiple successful industrial companies, and it's used as an indicator of the overall health of the economy. If the Dow Jones Industrial Average goes down, it's an indicator that most companies are losing value. When most companies lose value the economy is in recession. In economics there's what's called the short-run and long-run. The long-run is the point that the economy has adapted to its new position -- when companies have lowered wages in a recession or the average pay of workers has increased in inflation -- and isn't indicative of much at all because once the economy has adapted the past statistics don't matter. That's why posts like Frankies are literally embarrassingly dumb because it takes into account absolutely irrelevant data in the long run. The short run is what's worrisome because the economy has not yet adapted to the change and this is where things like striking unemployment numbers and poverty exist. In this case the 'short-run' can be considered to be about the past 2 years because the economy mostly recovered from the 2007 depression (as you can see in the 'max' graph where the Dow Jones passed the peak point prior to the crash) by late 2012, so that's a good marker of the end of the 'recovery' period and the start of the current period. That's my own interpretation and I'm sure some other economist would argue for a different point in time that signifies the start of the long-run, but you won't find an economist who will say that a 1,000 point drop in the DJIA over 6 days isn't a bad thing.

whoopsie, double post

[Dodger]

Is value related to owned assets and profit?

Also yeah, stuff is unstable short term

[$trinick]

Value certainly is related to owned assets and profit, but in the case of things like the Dow Jones value is more related to perceived confidence in the economy. If people believe their stocks are going to lose value soon they're going to try to sell before the value is lost and the increased supply of stocks on the market causes the price to sink. That's just basic economics, but when that starts happening across the entire face of the stock market with every company that shows unrest in the economic state of the US.