Gyan

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An interestingq question;

Market crash is responsible for a slowdown in the economy or a slowdown for the crash? Tech stocks corrected because investors realized ".com" was not a feasible business modal or ".com" turned infeasible because stocks corrected. More often then not people tend to think and believe that it is the the market, which is responsible for the slowdown.

This phenomena is not only restricted to the markets, this happens in real life also, most of the time I have observed that the reasons attributed to certain events may not be the reason for the event. And more often then not the reason is categorized as "Good" or "Bad", depending on the outcome.

Like Sub- Prime and leverage are considered responsible for all the job losses we have seen across the glob. My question is how many of those who have lost their jobs, would have got a job at the first place, if you had removed the excess liquidity created by leverage?

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