Economic parallels and self-fulfilling prophecies
- An overview of American culture
- The story of Oedipus from Greek mythology in relation to American economy
- Learnings from the movie 'Kung Fu Panda'
- The origin of Federal Deposit Insurance Committee (FDIC)
- The reason behind Great Depression in the US
- The origin of TARP (Troubled Asset Relief Program)
The American culture has always been utterly and completely obsessed with the economy. It envelops us and constantly pushes itself to the forefront of our thoughts. Unfortunately, we can?t always be perfectly in tune with our economy. When we mess up, the economy falls to its knees and can, with little to no hesitation, die at any moment. What we are experiencing right now is the American economy on its knees and crumbling fast. While this isn?t as severe as the Great Depression of 1929, it has been devastating nonetheless. What we?ve seen thus far are some rather interesting parallels between the current economic crisis and that of the 20s. While some may attribute our current state of affairs to the mortgage fiasco, the fall of American automakers, or overconfidence, I believe it was a combination of all of these, paired with the perception of security by investors.
[...] By not taking his money out at the early signs of market trouble, he was able to average his losses through dollar-cost averaging. However, this also meant that he doesn't have as much capital as he could to invest at the low-point in the market, which he believes is right about now. He found this to be quite interesting. I thanked him and we ended the interview on that note. As evidenced, there are far more parallels than anyone ever imagined between these two [...]
[...] When they are just starting out, they will display signs of wealth, such as sports cars, big houses, and of course, money, when in actuality they have none of these yet. Since these things attract rap's fan base, the video and music will sell, causing the rapper to launch a successful career. This will, in turn, bring him or her money, which will eventually lead to sports cars, big houses, and lots of cash. The self-fulfilling prophecy is clearly a very powerful bias, which is why I feel that it can very effectively be applied to these economic crises. [...]