Basic Paper

Unfilled orders fell .8%, marking a third-consecutive month of decline. Industries are softening up as durable goods orders fall below expectations, and it may continue to struggle if companies are reluctant to increase capital spending. There is growth nonetheless, but the rest of the year may yield below expected levels if the factory sector cannot recover. The US economic growth may be slowing as consumer spending slowed to a more moderate pace. According to the Commerce Department, the total value of goods and services slowed to 2.3% with a previous rate of 1.8% last year.

The market sold 12.9 million shares lost $5 billion dollars, and this was all over the course of one day. The panic was high, but was lowering because of the work of the bankers, but it was too late to save the market. Come the end of the following Monday the market has dropped down 2.6%, the biggest one-day decline in U.S. history. The morning of Tuesday, October 29th, 1929, Dow Jones Industrial opened at 252.6, following the previous closing of 260.64. Due to the small dip from last week, people believed their stock was in danger, and wanted to sell their shares while they could still gain profit, so when the banks began to suddenly start selling, everyone want to get what they could before it was too late.

The reason for this recent drop in consumer confidence is due to several key factors. One factor is the poor performance of the stock market. The Dow Jones is down from its peak that was hit last year, but has now rebounded slightly. The Nasdaq took a dive with the decrease in the prices of tech stocks. The Nasdaq has fallen nearly 56% from its peak in March of 2000.

On October of 1987 Black Monday occurred which caused the stock market to crash. The Persian war joined with the rising infiltration rates created this recession. When the recession began the Fed began to try to reduce infiltration, which then limited economic expansion. (Kevin Mulligan Recessions) Extreme changes in the GDP growth began to emerge at the beginning of 1990’s, however the overall growth seemed to remain positive. As a result of this recession a loss of consumer and business confidence was lost due to rising of oil prices along with an already weak economy.

After the financial crisis of 2008 there has been a dramatic decrease of foreign direct investment (FDI) around the world. Particularly the rapid decline in inflows has affected the recovery speed of FDI around the world. Inflows into Europe contracted by 42% and to North America by 21%, inflows to Australia and New Zealand together declined by 14% 1. However there are few exceptions to the trend, such as the United Kingdom who have managed to keep its FDI attraction. UNCTAD has confirmed that FDI inflows into the UK have risen by 22% 2 over the past year.

Historically, iron ore and coal trade are the two most highly determinants of this industry. Unfortunately, both of them have slowed down considerably of late, owing to failing demand for commodities in China. For instance, China’s iron ore imports for January, 2016 declined 14% to 82.19 million from the previous month that recorded a whopping 96.27 million. Meanwhile, coal imports in China were down approximately 9.2% for the month due to a severe capacity glut, cutting prices and eroding the cost advantages usually enjoyed by foreign suppliers. In reality, Chinese coal imports have fallen nearly 30% in 2015 from 2014

Andrew Ross Sorkin of ABC news stated, “… this is the time to be investing, because this is when people make money”. The Dow had dropped 18 percent, and many people were worried that the stock market was going to crash, although it didn’t. During this time, investors were trying to switch from investing in risky assets, to safe assets. As a result, the prices of the stock market decreased dramatic... ... middle of paper ... ... ways to handle these risks, like interest rates, audits, diversified portfolios, and increase the amount of securities it holds. During the financial crisis of 2008, the Fed decided to push banks to hold more reserves so they could have financial safety.

Unemployment has become an issue that is still arising today with a slow rate of change. By most measures, the economy has not improved: Unemployment is up, consumer spending is down, and financial markets have not regained the ground they lost in the 2008-09 financial crisis. Due to the occurrence of the Great Recession in 2007, the employment rate has drastically dropped disabling thousands of Americans to live up to the cost of living. It is obvious that the Great Recession can merely be the cause of the high rate of unemployment. This particular financial crisis has hit the American labor market forcefully, creating a large despair of inequality, which further affects different portions of society.

“The result was drastically falling output and drastically rising unemployment; ... ... middle of paper ... ...its were contracting it; The Fed's inaction was the reason why the initial recession turned into a prolonged depression; The economy continually sank throughout Hoover's entire term. Under Roosevelt's New Deal, it rose five out of seven years. Attempts to blame Big Government for the Depression do not withstand serious scrutiny; The Smoot-Hawley Tariff had a minor impact because trade formed only 6 percent of the U.S. economy, and reducing trade gave Americans only that much more money to spend domestically. Hoover's other attempts at government intervention came mostly during his last year in office, when the Depression was already at its depth; The first nations to come out of the Great Depression were Sweden, Germany, Great Britain, and then everyone else did so after they adopted the Keynesian solution of heavy deficit government spending and the Keynesian economic policies have eliminated the depression from the world's economies in the six decades that have followed. Works Cited WWW.huppi.com WWW.english.uiuc.edu Nelson Cary Kennedy, David Freedom From Fear: The American People in Depression and War Oxford, New York 1999 Oxford University Press

No longer standing tall amongst the competition, few companies in the world were hit quite as hard by the capitulating commodities prices. The price of Glencore shares would tumble to record lows, as the company revealed that profits had dropped by almost 30%, a figure that certainly floored many. With such figures hitting global newswires it was evident that Glencore shares were rotting from the inside and something had to be done. Speaking on the moves being made to restore pride to Glencore shares, Ivan Glasenberg (Chief Executive) said, “Against a challenging backdrop for many of our commodities, we have taken a range of pre-emptive actions in respect of our balance sheet, operations and capital spending in order to preserve our current credit