Jan
27
What is a good argumentative statement that incorporates the stock market and economic crisis?
Filed Under Economics
Shazeeda asked:
The economic crisis is the crisis of accreditation of loans, the arrest of the stock market, the unemployment rate, the value of the dollar etc … I have to write a controversial paper about the stock market, but the concept of stocks and bonds is confusing to me, despite the extensive research carried out. I'm having difficulty providing a controversial thesis. All suggestions will be useful Thank you!
LAWRENCE
The economic crisis is the crisis of accreditation of loans, the arrest of the stock market, the unemployment rate, the value of the dollar etc … I have to write a controversial paper about the stock market, but the concept of stocks and bonds is confusing to me, despite the extensive research carried out. I'm having difficulty providing a controversial thesis. All suggestions will be useful Thank you!
LAWRENCE
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2 Responses to “What is a good argumentative statement that incorporates the stock market and economic crisis?”
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The greed of corporate America and it’s CEOs in particular have lead to our current financial woes.
I know this is a bit vague but you could try taking issue with short selling.
On the one hand you could argue that it improves efficiency and acts as a strong incentive for firms to remain efficient. i.e firms cannot rely on their share price holding up despite lax management as short selling would pull the share price down.
On the other hand you could argue that short selling can result in firms with relatively healthy ballance sheets seeing their share price fall through the floor due to short sellers bringing prices down, leading to uncertainty, leading to further price drops, etc etc
This way you could bring in all the arguments for the free market on the “for” short selling side, and use all the information from this recession and its links to short selling on the “against” short selling side of the argument.
Maybe something like “Short selling: the achilles heel of a free stock market” or something ridiculously cheesy of that ilk!