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By: A. Hemnani  Stock market crashes are not a common occurrence. But when they do happen, they leave a mark. They have an impact. The government employs several strategies depending on the circumstances, and these approaches play a huge role in forming our world as we know it today.
The Great Depression was a historic stock market crash that affected many countries in the world from 1929 to 1939, although some may argue that it only ended after the Second World War. The main factors that led to the Great Depression were the stock market crash of 1929 and the collapse of world trade. As a result, food riots began in 1931 followed by the bank's collapse and by 1932 President Roosevelt was elected. In the Great Depression, the government allowed the market to crash, which resulted in the destruction of the livelihood of a whole generation. (Is that cruel considering the circumstances?) The results at the beginning were not at all positive, in the short term the GDP decreased by 29% (1929-1939) and the unemployment rose by 25% (1939) while people were also suffering at the beginning of the Second World War. After significant deflation and a great economic slowdown, the market began to self-correct, and the government sponsored a great infrastructure build called the New Deal. This was a series of programs that "helped put people back to work, saved capitalism, and restored faith in the American economic system". The hoover dam was built as a result of this project and the US became one of the most efficient logistic hubs, allowing it to be more competitive globally. It increased the case of infrastructure send while employing people in the process. Little did she know that would give birth to the USA as we know it today. Different from the great depression, the 2008/9 stock market crash is an example of what happens with government intervention. Deregulation in the financial industry is seen as a contributor to the start of the 2008 stock market crash. In this case, the world economy was very interconnected, so the government had to step in. The government began injecting money into the economy bringing stability and in the short term, avoiding a crisis. However, in the medium term, the economy had immense structural inflation. When this happened, people created a higher appetite for risk since they believed the government would 'bail them out'. This was until the 2020 Covid-19 stock market crash; known as the lowest drop point in history. We can clearly tell that the roles of central banks and governments were different in these two examples, as well as the different remedies taken by the governments then versus now. Was congress too late in stopping the Great Depression? Did the Great Depression lead to a rise of fear in the 2008 government, leading them to inject too much money too quickly? Which approach was more successful? There are many reasons to think about government intervention and the choices they make, but only time will tell which is the right one...... Sources: By: A. Thiollier  When these fateful few months come around every four years, no country is as excited as our own: Brazil. On the days of the Brazilian games, not one person can be found on the streets, and the only sounds that interrupt the silence of anticipation are the roars of celebration when our famous players score a goal. Here, the world cup is sometimes the only event that brings families and friends together as everyone shows their support for the small yellow players onscreen. Each person likes to celebrate in different ways, and many are convinced that these traditions are the key to victory. Some people have such crazy superstitions that it seems worthy enough to mention, or even to write an article about.
One of these superstitions even brought fame to the dedicated fan. This was the case of Clovis Fernandes, who was later known to others as ‘Gaúcho da Copa’. He brought it upon himself to watch as many of the Brazilian games as he could in the live audience. His presence in the countries where the games were taking place brought comfort to other Brazilians, who felt that he would certainly bring victory to the players. Even his son took a superstition from Clovis, wearing the same shirt his father had once owned to every game Brazil played in one of the World Cups without washing it until Brazil won the finals, becoming the first four-time champion. Although not all people go to such extremes as watching all the games live, each person has a thing that they do just to bring a little more luck to the field. Some refuse to watch the games with their friends because that one time they did Brazil lost. Some even remain in the same position throughout the entire match to avoid the risk of the other team scoring while they were shifting around. Others go to the bathroom before each game begins to not need to go during the match and return only to see that the opposite team had scored a goal. One lady became known as “vovó da sorte” after having lit a candle mere seconds before a goal was scored in a past World Cup. Fans aren’t the only ones with superstitions. The blue Brazilian team uniform was created in 1958, when Brazil needed to play the finals in their second uniform, which was, at the time white. However, the white uniform brought bad luck in the finals of 1950. Anxious about the game, the Brazilian head of delegation at the time prayed for victory. He is said to have seen Nossa Senhora Aparecida in a blue coat during his prayers, and from this vision, he had an idea. Blue uniforms were acquired for the team, and that was the year Brazil won its first title. Since then, the shirt has been said to bring luck, and has become the official second uniform for the team. Cheering on the Brazilian team is made even more special with small traditions and superstitions that we use to bring power to the players. I’m sure you or someone you know has some small form of luck charm, and although we may sometimes feel silly for believing they work, there is something comforting in doing something to help the footballers play their way to victory. Even though they most likely do not work, I'm sure it gives hope to the players on the field when they know that their whole country is rooting for them. |
