A trader works on the floor of the New York Stock Exchange on August 24, 2015 in New York City. It didn’t work, it came to a shuddering halt in 2008 and instead of admitting it, instead of central banks and politicians having the guts to face it and say, ‘We have to find a new way’, they just threw petrol (invented money), at the flames of a monetary and economic system that was no longer viable.
In each regression, the right-hand side variables include three dummies for the four periods we focus on: February through June 2008 is the reference category, the first dummy is for July through September 2008, the second dummy is for October through November 2008, and the third dummy is for December 2008 through February 2009.
Pakistan’s Prime Minister Nawaz Sharif (R) meets Iranian President Hassan Rouhani in Islamabad, in this March 25, 2016 handout photo.According to official figures, bilateral trade stood at about $1.3 billion before US-led sanctions on Iran in 2012 brought it down to $432 million.
On the other hand, the financial crisis of 2008 may have affected people’s expectations in qualitatively different ways than the more gradual changes witnessed in 2002, especially if people had different views about the condition of the economy in 2002 and in 2008.
Specification 1 shows no relationship between returns and average expectations, because it shows the mixed results of a positive relationship between changes in the DJIA and the average level of expectations in the pre-crash period and the temporary increase in expectations after the crash.