Bulls and Bears - The Rise and Fall of the Stock Markets at the Turn of the 21st Century

Hausarbeit (Hauptseminar) , 2004 , 21 Seiten , Note: 1,0 (A)

Amerikanistik - Kultur und Landeskunde

This paper aims to collect opinions on the development of the stock markets since the 1990s. People from varying fields and backgrounds have written about the recent situation of the economy. First, there are economists like Yale professor Robert J. Shiller, whose book Irrational Exuberance coincided with the bursting of the bubble in 2000. Then there is political analyst Kevin Phillips who reconstructs and discusses the boom and decline of the markets in a political and historical context in Wealth and Democracy: A Political History of the American Rich, or radical journalist Alexander Cockburn whose articles for publications like The New York Press and The Nation focus on the aspects of corporate fraud and the politics behind the market dilemma. Others, like financial economists Robert E. Hall and Alan Reynolds reject the idea of bubbles and argue that the recent decline of the stock markets is merely part of a normal economy cycle that may be derived from historical context as well as from mathematical equation.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• The Stock Market Development since the 1990s
  • Illustration: Dow Jones Index
  • Illustration: Nasdaq Composite Index
  • Where are the profits? – Insider Business
  • After Dotcom - Fraud and the Crash of the Telecoms
• Rational or Irrational Markets?
  • Arguments For Rational Stock Markets
  • Irrational Markets - Irrational Exuberance
  • The Bubble Years 1998-2000
• The Development of Wealth Inequality During the Boom Years

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to explore the development of the stock markets since the 1990s, examining the perspectives of various experts from different fields. It delves into the factors that contributed to the rise and fall of the markets, including economic, political, and social aspects. The paper highlights the impact of technological advancements and the emergence of online trading on market behavior.

• The impact of the internet on stock market behavior.
• The rise and fall of stock market bubbles, specifically the dot-com bubble of the late 1990s.
• The interplay between rational and irrational market forces.
• The influence of insider trading and corporate fraud on market stability.
• The link between stock market trends and wealth inequality.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter establishes the historical context of stock trading and its evolution from a taboo activity to a respected business. It introduces the concept of stock market bubbles and highlights the significance of the dot-com bubble of the late 1990s.
• The Stock Market Development since the 1990s: This chapter focuses on the dramatic growth of the stock market in the 1990s, fueled by technological advancements and the rise of online trading. It examines the factors that contributed to the surge in stock volume, including the proliferation of day traders and the impact of the Nasdaq index.
• Rational or Irrational Markets?: This chapter explores the debate surrounding the rational and irrational forces at play in the stock market. It examines arguments for both sides, highlighting the role of factors such as investor psychology and market manipulation.
• The Development of Wealth Inequality During the Boom Years: This chapter examines the link between stock market trends and wealth inequality, exploring the economic consequences of the boom years and their impact on the distribution of wealth.

Schlüsselwörter (Keywords)

The core concepts explored in this paper include stock market bubbles, online trading, insider trading, corporate fraud, market rationality, irrational exuberance, wealth inequality, and the impact of technology on financial markets. The analysis draws on the perspectives of economists, political analysts, and journalists to offer a multi-faceted examination of the stock market's complex dynamics.

• Hochschule: Technische Universität Dresden (American Studies)
• Note: 1,0 (A)
• Autor: Beate Gansauge (Autor:in)
• Erscheinungsjahr: 2004
• Seiten: 21
• Katalognummer: V28406
• ISBN (eBook): 9783638301947
• ISBN (Buch): 9783640330201
• Sprache: Englisch
• Schlagworte: Bulls, Bears, Rise, Fall, Stock, Markets, Turn, Century