The stock price in the stock market falls, which will cause many people to lose money, but the money has also invested in the market. After the bubble is broken, where does the money go? Money is still flowing in the market of this country. Isn't the money still there?
2 thoughts on “Why does the financial crisis lead to the backward of the country's economy”
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Stocks are virtual currencies, and they are the expected value of an enterprise. When the company's sales and cannot develop, everyone's expectations will depreciate. As a result, the value of the stock part of the stock is equivalent to the value of the value of everyone's expectations when the company's sales and development are beyond reaching. Therefore, virtual increased goods (stock) value.
The biggest performance of the economic crisis is that prices have risen. To put it simply, when you can only buy the previous 50 yuan or fewer products after the economic crisis occurs, your purchasing power and the overall purchasing power of the country will be reduced. Directly to say, the currency depreciation, thereby generating economic retrogression.
Because China's economy follows the US economy, the US dollar is a circulating currency in the world. Everything is denominated in the US dollar. The economic crisis comes. You think that money is either in a bank or in the stock market. If the economy is not good, the country will launch QE. The market will flow too much hot money, and the money will be worthless.