* Stock Markets were on an all time red. The S&P fell by 7,6% in one day. * Gold rose to 1,7k $ for the first time in 7 years. * Currency investors looking into safer currencies like the yen. * Saudi Arabia played a dirty trick on Russia * The oil-price spikes of the 1970s and early 1990s led to recessions because they transferred income from oil-consuming countries in the West to oil-producing countries in the Middle East. The consumers were forced to cut spending, but the producers saved much of their windfall. The net effect was to squash aggregate demand. So a sharp drop should act as a stimulus. * Saudi is planning on targeting world economy by hitting russia directly * Russia decided to cut production to stabilise the price of oil so that the economy wouldnt crumble. * Saudi decided to do the complete oposite, work on giving oil discounts to their clients. * In theory, when the price of the oil goes down, the westen economy rises because they haave more to consume. * The issue is that the U.S is still a big producer of oil. by the oil barrel dropping, it affects on it's economy. https://www.economist.com/finance-and-economics/2020/03/09/how-market-panic-can-feed-back-to-the-world-economy https://www.economist.com/finance-and-economics/2020/03/09/saudi-russian-price-war-sends-oil-and-stockmarkets-crashing * 6% means losses of BILLIONS of dollars, * EXXONMOBIL lost about 100$billion dollars in the span of 1 day. https://www.bloomberg.com/news/articles/2020-03-10/chaos-of-2020-can-t-match-2008-but-the-gut-punch-feels-familiar?srnd=fixed-income * Situation is different than 2008 but it is still a hard pill to swallow * 12% plunge in 12 days for the s&p 500 is not a funny feeling * Situation is very different between now and 2008. first & foremost, it didn't have the biggest epidemic in 17 years. https://www.wealthsimple.com/en-ca/learn/2008-market-crash What happened in 2008. * Easy credit & raising home prices resulted in a speculative real estate bubble. * Easy credit meant people who couldn't afford properties would be getting loans for big houses. * Many people couldnt pay the houses they were living in it so they would sell it. The increased home equity would cover the payments but the home would be lost. Because this massive bailout happened, Many Giant corporations filed bankrupcy, like the American International Group (AIG) and the Lehman brothers. How will this affect U.S politics. The American elections are later this year. Trump has managed to lower the unemployment rate to an all time low in the us (3,6%) Ether you like him or not, Mr Orange Tan is a well renowned business man who has kept the American Economy at a stable growth. The American people wouldn't risk changing Political spectrum in the midst of an economic crisis. In my opinion, Trump could not be in a better place to win the 2020 Presidential elections. https://www.google.com/search?q=current+unemployment+rate+us&rlz=1C1GCEA_enCA760CA760&oq=current+unemployment+rate+us&aqs=chrome..69i57j0l7.9691j1j1&sourceid=chrome&ie=UTF-8 https://open.spotify.com/episode/2sgso4PFIsKJ0uMsl1oJsr?si=bIXMZkjDRv6pSrS2Zozx_Q https://www.instagram.com/p/B9hkJz9prfD/?igshid=1srwg4z2c9swh https://www.instagram.com/p/B9aULRVHt_R/?igshid=1kg96w1o35wpb
Hello there, I admitted to wanting to take over the world even though I dropped out of school. How are the ways I am educating myself and keeping up to date in current ways industries work. I also talk about how I am a fail E-Commerce Guru losing more money than I made on Shopify. My goal for this podcast is about finding specific things people find interesting & relevant in their professional careers. “Nerd is the New Cool”.