Stock market crash

Even though I haven´t fully digested all that happened in the fall semestr, the spring was here and the spring semester with it. I found myself yet again focusing on studies of subjects that were even more difficult and demanding than the previous ones.

My most difficult subject and the most extensive research paper were from economics. I had to analyze the relationship between stock market crashes and recessions. It is generally widely believed that the 1929 stock market crash ushered the Great Depression of the 1930s. However, the stock market crash, despite its time coincidence with the depression, was not its cause. The conclusion of the research was that stock market crashes are a result of bursting of asset bubbles, which occur in all asset classes, including securities and stocks, and tht they are not necessarily associated with recessions or depressions.

In 1987, there had been a stock market crash, which was not followed by a recession. Then there were recessions without stock market crashes. The financial crisis of 2008/9 was a result of bursting another aset buble, which rose from a protracted period of artificially low interest rates and the following recession was caused by a slash in aggregate demand.

Now, I have finally gone through the marathon of final exams, and successfully passed all of them. I have graduated in the traditional American fashion wearing a black gown bearing my school and academic emblems and a rectangular hat with a tassel. Right now I am spending my summer looking for a job and I´m looking forward to implementing my studies in the real world.

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