Losses in financial markets since the year’s start have engendered fears of a replay of the 2008 financial crisis. Justin Lahart of The Wall Street Journal explains the crucial differences between then and now. Paul Krugman of The New York Times dissects China’s problems and discusses the potential for psychological contagion. Finally, Liz Ann Sonders of Charles Schwab and Bradley Olson of The Wall Street Journal answer questions from Judy Woodruff of PBS Newshour what plummeting oil prices mean for the U.S. stock market.
Why this Market Meltdown isn’t a repeat of 2008. Losses in financial markets since the year’s start have engendered fears of a replay of the 2008 global financial crisis. There are crucial differences between now and then, according to The Wall Street Journal. [Registration required OR google key terms to read article]
When China Stumbles. China’s problems do not seem big enough to cause a global crisis; however, there is risk of psychological contagion, where good or bad news in one major economy affects animal spirits in others, according to Paul Krugman of The New York Times.
What plummeting oil prices mean for the U.S. stock market? This does not resemble 2008 by any stretch. What we’re seeing now is more concentrated in oil and commodities—2008 was a seizure of the financial system. This is more like 1998 than 2008 according to Liz Ann Sonders in this PBS Newshour interview.
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