Category Archives: History of markets

Explaining how Reaganomics failed to act against the effects of rate hikes

Tax cuts, investment, the strong dollar and the twin deficits. For economists, Reaganomics is a very unique economic experiment. Looking at the GDP and the stock market in 1980s, it seems that Reaganomics was successful, but it is not well understood what exactly drove the economy. This article aims to explain why Reaganomics failed in the first few years and led to the later success, and what the cause was.

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How you could have predicted the financial crisis in 2008

It is not always easy to predict a collapse of a financial bubble, but there often is something that indicates it in advance.

In the case of the subprime mortgage crisis in 2008, some famed fund managers such as George Soros or John Paulson knew it could be as serious as it eventually happened to be. This article explains the economic situations during the crisis and shows the statistics that preceded to imply the timing of the collapse of the stock markets.

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Why did Black Monday happen in 1987: Reaganomics, the Plaza Accord and the German rate hike

Throughout hundreds of years the essence of the financial markets has never changed, and the investors continue to experience absurd financial bubbles of the common root.

This perhaps gives this article some significance, as we explain here the cause of Black Monday in 1987. Many say there was no specific cause of the market crash, or it’s difficult to identify the reason, but some great investors even predicted the collapse in advance, as there were the definite causes for the bubble we can explain here. We also include here how Mr George Soros traded in the markets during the period.

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