Explaining the Decline of Business in 2007

887 Words4 Pages
At the onset of this project we came up with the claim that I could use the logarithmic and/or natural log to explain the decline in business. The way in which this is to be accomplished is by taking all the sales figures from a 31 day period in 2007. We would then take another month with the same 31 day period and take those figures. After graphing and comparing the two we postulate that the graphs would show the direct decline graphically of what we will explain in this paper. After graphing the figures we saw that the mathematical model that we had previously used would not be adequate with the explanation. So we then did another 31 day comparative between a 31 day period in 2007. Then again in 2013. These figures were then compared to the national average for hotels for the same period. The interesting fact that came about was the direct correlation between the falls in sales figures both nationally and here in south Florida and the corresponding securitization and real estate bubble burst. What we will do in the following pages is explain what led up to the bubble burst as well as some of the mathematical approaches in explaining the bursts. Every economic bubble in history started with reckless expansion of money supply and credit, reckless manipulation of interest rates, or government promotions of "low-risk" something for nothing schemes. We saw this happen during the Reagan administration with the low interest rates given. Hence the new popular movie Wolf on Wall
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