Yahoo Finance

Moreover, the financial system is paralyzed and flirting with the insolvency, the unemployment it has grown of deep form, many sectors have management problem and of efficiency and they only survive to the cost of subsidies and, to get worse the European Community and Japan also they are in crisis and contraction, but not yet we are speaking of depression, but the comparison of the current crisis with the one of 1929 is inevitable. Graph 4 shows the occured fall in the Dow Jones index in the two episodes. Graph 4 – Monthly closing – Dow Jones Industrial Source: Yahoo Finance – Adapted for the author economic Growth and the contamination From the end of the decade of 1990 many countries had tried a vigorous economic growth with low taxes of inflation. The optimism took account of the global economy, although the occurrence of isolated crises and the scare of the burst of the technological bubble. Many credit this growth to the use of new technologies, to the commercial and financial globalization, certain reduction of trade barriers, to the economic deregulation and the gradual adoption of liberalizantes rules in the financial systems of the countries central offices of the capitalism. The economic growth was anti-symmetrical, while China has grown vigorously, Japan, since the burst of its real estate bubble in years 90, has presented growth low Brazil only obtained taxes of growth in the world-wide average in last the three years, attributed results, in the Brazilian case, to the high prices of commodities of our guideline of exportation and to the abundance of financial resources in the world. The fact of the economies to be linked in net with low restriction to the movements of the resources for the financial market 17 propitiated the economic agents quickly to change to its position in the market, taking care of the varied intentions, as to anticipate to the effect of the crisis, to protect position, to reduce exposition to the leverage, to cover eventual fragilities or damages, or same to get speculative profits of short term.

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