mercedo wrote today at 12:54 AM
This is a very basic economic argument according to my theory.
Black Monday took place in 1987. Gulf war followed in 1990. Great depression started in 1929, then Nazis took power in 1933.
Prior to any war, we are sure to have a kind of economic recession, in other words economic crush is the omen of war in advance.
Nominal value is money or savings, or 'flow' in economic term, if nominal value is much higher than substantial value, or 'stock' in economic term, a stock here means supply of goods or materials available for sale or use, again if nominal value exceeds substantial value, it is very dangerous. Because war is the easiest way to eliminate this gap. In war always winners acquires some substantial value( land, raw material, resources, etc) to add up to their previous substantial value, which resulting in making their nominal value and substantial value equalise.
I think you heard about the news of sub-prime non performing loan. This loan was sold all over the world through security companies in each country, so it is impossible to make up for each loss those non performing loans made. This has been causing the downward of the price of shares in stock market.