What is the Big Crunch?

Economic crisis refers to the crisis of overproduction that periodically erupts during the production process of capitalism. This kind of excess production is not absolute surplus but relative surplus, that is, surplus relative to the demand of working people to pay and the need for capital value appreciation. ^[1-3]

financial crisis

Economic crisis

economic

The most direct cause of the economic crisis is the disorderly competition between production and consumption and the market, which are closely related to each other as specific manifestations. It is their combination that inevitably causes the destruction of reproduction cycles and causes an economy of overproduction.

The economic crisis has severely damaged social productivity, and each crisis has caused production

That is, overcapacity

The period between the outbreak of one crisis and the beginning of the next, constitutes

Not only in the previous society, there was a cyclical economy

The great crisis of 1929 ~ 1933 was at

The economic crisis has intensified the contradictions between countries.

Second, in the process of economic development, governments of various countries and countries with different systems must adapt to the continuous development of the economy, adjust internal mechanisms and policies in a timely manner, and continuously coordinate international relations to create a good domestic and international environment for the sustainable development of the economy.

Third, once the economic and financial crisis occurs, governments and organizations of various countries should assume their respective international responsibilities and obligations, so as to effectively curb the crisis and prevent its deterioration, expansion and continuation. Governments and international organizations must fundamentally abandon self-insurance policies and means of transfer of neighbours, and

From once

As mentioned before, with the pre-war

The contemporary world is facing the climax of a new technological revolution. The computer industry,

I. Huang Fu Jiali is reading

The subjective value in the production process of commodities can be divided into three types: one is the subjective value of investors, the second is the subjective value of laborers, and the third is the subjective value of commodity buyers.

1637 Tulip Mania

Tulips were a very dangerous thing in the 17th century in the Netherlands. Earlier in 1637, when tulips were still growing in the field, the price had risen hundreds or even thousands of times. A tulip may be the sum of the monthly income of twenty skilled workers. Everyone acknowledges that this is the first speculative bubble in the history of modern finance. The incident also caused controversy-what role should the government play in an exchange system where the market has apparently failed?

1720 South China Sea Bubble

The collapse of the South China Sea Company in 1720 brought a huge shadow to the entire London financial industry. In the 17th century, the British economy flourished. However, people's funds were idle and their savings swelled. At that time, there were very few shares issued, and owning stocks was still a privilege. For this reason, Nanhai Company found a profitable business opportunity, that is, trading with the government in exchange for operating privileges, because the public was optimistic about the stock price and promoted the conversion of bonds to stocks at that time, which in turn affected the rise in stock prices.

In 1720, in order to stimulate the issuance of stocks, Nanhai Company accepted the way for investors to purchase new shares in installments. Investment has been very enthusiastic, and demand outstripping stock prices has caused prices to soar to more than £ 1,000. The company's true performance seriously deviates from expectations. Later, because Congress passed the "Anti-Financial Fraud and Speculation Law," insiders and government officials sold off, Nanhai's stock price plummeted, and the South China Sea bubble burst.

The panic of 1837

In 1837, the economic panic in the United States caused the contraction of the banking industry. Due to the lack of sufficient precious metals, banks were unable to pay the issued currency and had to be repeatedly postponed. The economic depression caused by this panic lasted until 1843.

The reasons for the panic are many: the transfer of precious metals from the federal government to state banks has dispersed reserves and hindered centralized management; pressure from British banks; the lack of a stable US economic mechanism caused by decentralized reserves and so on.

Bank crisis of 1907

In October 1907, the U.S. bank crisis broke out. About half of New York's bank loans were invested by high-interest return trust and investment companies as collateral in high-risk stock markets and bonds, and the entire financial market fell into a state of extreme speculation.

The first is that news-orientation-oriented articles began to appear in large numbers to promote new financial ideas. At that time, there was an article by Paul entitled "Weaknesses and Needs of Our Banking System". Since then, Paul has become the chief drummer in the United States to advocate for the central banking system.

Shortly thereafter, Jacob Schiff declared at the New York Chamber of Commerce: "Unless we have a central bank with sufficient credit resources, we will experience an unprecedented and far-reaching financial crisis."

The 1929 crash

The worst time ever on Wall Street.

Black Monday 1987

In 1987, due to deteriorating economic expectations and the tense situation in the Middle East, the Dow Jones Industrial Average of the New York Stock Exchange plummeted that day, causing a major collapse of the Wall Street stock market. This is "Black Monday". The S & P index has fallen by 20% and countless people are suffering.

The financial crisis of 2008

A series of sudden "changes" such as Lehman Brothers' application for bankruptcy protection, Merrill Lynch "committed" to Bank of America, and AIG's urgency have shocked countries around the world for the US financial crisis. Wall Street's "abuse" of financial derivatives and its underestimation of the subprime mortgage crisis have finally brought bitter results. The financial crisis quickly triggered the domino effect, and the economic foundations of all countries in the world, especially the developing countries, were severely damaged, comparable to the economic collapse of Roosevelt in 1929.