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Wednesday, May 4, 2011

"A review of the Stock Market," by Zach B.

As everyone saw nearly three years ago, the housing market collapsed, which caused the global stock market to go downhill from there. This economic downturn became known as the 2008 Global Financial crisis. Nearly every business market has been touched by this economic downturn and with record high foreclosures and corporate failures being bought by the government: the first of which was A.I.G. and later on G.M.C. and Chrysler.

The question still remains, is there a immanent possibility of a double dip in the stock market. A "double dip" is when after the stock market goes down hill and it will get a little bit better and then will go down even further than the first dip which is what the Global economy went through in 2008-2010. There is never clue of a double dip untill it happens, but with increasing debt; China stating that the world should recognizance theirs as the dominate currency, and with several business and publishing intuitions’ downgrading our national credit, this that not proof enough of an impending double dip. The official definition of a double dip is when gross domestic product (GDP) overall growth slides back into the negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession. So the eviendence is clear and that is we may not have much longer until the stock market goes down again, and this time most likely even further.
Only time will tell!

Sources:

Double Dip Recession Investiapedia

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