2008 - A Year when Bubbles Burst
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The Bursting of the Bubble - Shares, Property, Food and Black Gold
The markets are closed for 2008 and rarely can the day-to-day gyrations of prices in financial, property and commodity markets have generated so much analysis, comment, discussion and debate. In short, this was a year when the bubble economy that policy-makers failed to deflate when they had the chance earlier on in the decade, burst with spectacular and dangerous consequences.
The FTSE 100 index lost 31.3% in 2008 - the worst performance since the index was created in 1984
UK house prices plummeted by 12.2% in the 12 months to November. Land Registry data shows that the average property in England and Wales cost £161,883 in November, a fall of more than £22,000 compared with the same month in 2007. The bottom of the market remains so distance away.
Crude oil slid to $38 a barrel at the end of trading for 2008, heading for its worst year ever with a fall of 60% over 2008 - and a spike to over $147 in between! In contrast, gold prices (in dollar terms) have gained 6 per cent .
Here is a short chart room presentation available for download which gathers together some of the key charts - I will be doing a series of Year in Review Chart Rooms for different countries and markets over the coming week, I hope that some of them might be useful in the classroom.
Presentation
2008_Bubble_Bursts.ppt
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Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 3 Micro: Game Theory and Business Economics [21 May 2012]
Unit 2 Macro: The Current Account of the Balance of Payments [20 May 2012]
Unit 2 Macro: Measuring Inflation in the UK [20 May 2012]
Unit 2 Macro: Real Interest Rates [20 May 2012]
Q&A: What do we need to know about output gaps? [20 May 2012]
Unit 2 Macro: The Output Gap [20 May 2012]
Unit 1 Micro: Revision Presentation on the Price Mechanism [16 May 2012]
Unit 1 Micro: Revision on Rice Prices [13 May 2012]
Unit 1 Micro: Price Elasticity of Supply [13 May 2012]
Unit 1 Micro: Income Elasticity of Demand [13 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 1 Micro: Revision Blogs on Markets and Intervention [10 May 2012]
Unit 1 Micro: Revision Quiz and Game on Market Prices [10 May 2012]
Unit 2 Macro: Monetary Policy and Inflation Glossary [5 May 2012]
Unit 2 Macro: Aggregate Demand Glossary [5 May 2012]
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Tullow Oil and African Development [25 Apr 2012]
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Unit 1 Micro: The Collapsing Price of Carbon [3 Apr 2012]
Unit 1 Micro: Revision on Producer Subsidies [2 Apr 2012]
Unit 2 Macro: Revision on Real Economic Data [2 Apr 2012]
Unit 2 Macro: Revision on Real Disposable Income [2 Apr 2012]
Unit 3 Micro: Revision on Scale Economies, Technology and Prices [1 Apr 2012]
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Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 3 Micro: Sub Normal Profits - BP Leaves the Solar Industry [21 Dec 2011]
Unit 3 Micro: Oligopoly and Duopoly in Bus Markets [20 Dec 2011]
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Unit 1 Micro: Producing Coffee - Kenya in Pictures [4 Oct 2011]
Unit 1 Micro: Homework Assignment on Market Prices [2 Oct 2011]
Unit 1 Micro: Exercise on Equilibrium Market Prices [27 Sep 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
Unit 4 Macro: IMF Flags up Risks of Double Dip [20 Sep 2011]
Unit 2 Macro: Economic Growth and Inequality [14 Sep 2011]
Study Note - What is Macroeconomics? [13 Sep 2011]
Unit 2 Macro: Value Added in Production and GDP [11 Sep 2011]
Starter Activity: Health Economics [1 Sep 2011]
Monetary Policy Roundtable [25 Jul 2011]
Unit 1 Micro: Cotton Prices and the Retail Price of Clothing [13 Jul 2011]
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Zondle Game: 10 Question Quiz about OPEC [11 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
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AQA ECON4 Context [20 Jun 2011]
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