Re: What are the mechanics behind a market crash?
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Ok this is something I've always wondered. I just don't understand how a bunch of people can simultaneously decide that EVERYTHING is worth NOTHING (practically). I would imagine it has something to do with price/earnings multiples leading to the fact that the actual value of the securities pales in comparison to how much money is invested, but it still seems like sort of a perfect storm type situation to me.
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read george soros' Theory of Reflexivity
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