The falling markets and global economic crisis

Generally speaking a stock market crash is marked by a sudden decline of stock prices across a wide section of the market. These crashes are usually initiated by macroeconomic factors but are then deepened and worsened by investors' sentiments and by public panic that makes it hard for the prices to rebound.

The stock market today finds itself in such a situation due to what economists are already calling The Stock Market Crash of 2008. This stock market crash officially began on September 16 with the simultaneous failures of major financial institutions in the US. The crisis quickly expanded to global dimensions with financial institutions collapsing all across Europe, Asia and Latin America, leading to cease trade orders in several countries across these continents.

Naturally due to the plummeting prices investors are reluctant to start investing their money in the stock market or stock market futures. The stock market crash continues to have devastating effects on the global economy. Just recently on October 24^th many world stock markets experienced the worst declines in the history of their stock markets, with no new stock market future contracts being signed.

Several analysts have pointed out that this recent drops in the stock market today are overall nowhere near the severity of the previous stock market crash in 1987. They bring forth evidence suggests that the media is exaggerating the declines in the stock market today and calling them "stock market crashes" to create the perception of a great financial crisis. These hyperbolic media representations could indeed serve to deepen the crisis and cause the Stock Market Crash of 2008 to really become the worst in history. In any case, this stock market crash is certainly already the most widespread in human history, due to the globalized nature of today's economy.