1、 7UNITEconomic bubbles:Causes and conditionsTo master the reading skillTo understand the textTo practice the phrases and patternsTo learn about report givingUNIT Warming-up Reading skills Text study Comparative study Unit projectSection B Warming-upSection BVideo Watching1.What does a public company
2、 do in order to expand its business?2.According to the video,how does the stock market work?Public companies can offer ownership to everyone.For those successful ones with big expansion plans and without enough money,they can divide part of their ownership into thousands of pieces and sell them to t
3、he public.This is how company stocks,or shares,work.In this way,the individuals get a small part of the company while the companies can raise money for their expansion.1.What does a public company do in order to expand its business?2.According to the video,how does the stock market work?Each investo
4、r on the stock market expects to buy shares at a low price and sell them at a higher price.But this is a risky game,because a companys future is hard to predict.Each business day,investors buy and sell shares depending how they feel about the companys future value.Some days,there is more buying and
5、the stock price will be lifted higher while more selling will cause price to fall.As people buy and sell shares,stock prices can change each day.1.What is the tulip-buying bubble?2.What is“herd mentality”?In Holland during the early 1600s,it was not stocks but tulip bulbs that made investors rich be
6、yond their wildest dreams,ruined thousands when the Tulip Bubble burst,and threw the national economy into major depression.It is generally considered the first recorded speculative bubble.1.What is the tulip-buying bubble?Herd mentality is a phenomenon in which people are influenced by their peers
7、to adopt certain behaviors,follow trends,and/or purchase items.Examples of the herd mentality include stock market trends,fashions in apparel,cars,taste in music,home dcor,etc.Use caution with this expression;it can easily be insulting because it implies“mindless running with the herd(of cattle)”.2.
8、What is“herd mentality”?Reading skillsSection BThe decoding of a written word or phrase is a very important aspect of the act of reading.Without being able to decode the written word or phrase,reading comprehension is impossible.Thus,to decode the written word or phrase,the readers must be able to r
9、ecognize their definitions and examples in the context as well as integrate what they are reading with their prior knowledge,common sense,etc.Recognizing definitions in a textRecognizing definitions in a textIn short,definitions may be developed in the ways as follows:1 A definition typically starts
10、 with one meaning of a term.The meaning is then illustrated with a series of details.2 A definition is developed through examples.3 A definition may be developed through a series of comparisons and contrasts.4 A definition may be developed by describing how a certain event happens.Take the sentence
11、from Text A for example:She was part of a hard-luck group of jobless people who called themselves“99ers”,because they had exhausted the maximum 99 weeks of unemployment insurance benefits that they could claim.(Para.4)Question:What are“99ers”?Recognizing definitions in a textAnswer:“99ers”are a hard
12、-luck group of jobless people who had exhausted the maximum 99 weeks of unemployment insurance benefits that they could claim.The author provides the meaning of“99ers”by explaining why people called themselves“99ers”.Recognizing definitions in a text1.What are“economic bubbles”?2.What is the“negativ
13、e feedback”mechanism?3.What is the“greater fool theory”?4.What are“stock market bubbles”?5.How is“herd mentality”defined here?6.What is the“dot-com”bubble?Read Text B and try to identify how the definitions are developed.Recognizing definitions in a text Text studySection B1.When do economic bubbles
14、 occur?(Para.1)2.What is the“negative feedback”mechanism?(Para.2)3.What is the“greater fool theory”?(Para.3)4.When might the effects of a bubble become cumulative?(Para.4)5.How is“herd mentality”defined?(Para.6)6.Why did the“dot-com”bubble happen?(Para.7)7.Where do bubbles occur?(Para.8)Questions pr
15、eviewing1.When do economic bubbles occur?(Para.1)Economic bubbles occur when excessive investment in commodities(such as oil),securities(such as stocks and bonds),real estate,or collectibles drives up prices well beyond the items intrinsic value.2.What is the“negative feedback”mechanism?(Para.2)It i
16、s a mechanism that adjusts prices downward.In order to make the concept clear,comparison or contrast is used to illustrate how the economic feedback mechanism works through an analogy.原句：原句：Since most speculators are nervous about where they invest their money,bubbles are by no means the norm.(Para.
17、2,L2)解释解释:The economic bubbles dont occur easily because most speculators worry about their investment.译文：译文：由于大多数的投机者对资金的投向都有所顾虑，因此泡沫的产生绝非常态。Sentence interpretation3.What is the“greater fool theory”?(Para.3)Buyers justify their purchases by assuring themselves they will find“a greater fool”who will
18、 pay even more.“The greater fool theory”typically starts with definition and meaning of the term,and then it is followed by an illustration and one famous example.原句：原句：If the price rises,overly enthusiastic speculators buy more,or those who missed out on the lower price flock to buy before the pric
19、e rises any higher.(Para.3,L4)解释解释:If the price rises,over-enthusiastic speculators buy more,or those who lost the opportunity to buy the stocks at a lower price gather in crowds to buy before the price rises any higher.译文：译文：如果价格上涨，狂热的投机者就会买入更多，或者那些错过低价买入的人就会在价格进一步 攀升之前蜂拥入市。Sentence interpretation4
20、.When might the effects of a bubble become cumulative?(Para.4)The effects of a bubble might become cumulative if many owners of an overpriced asset feel rich and spend foolishly,especially in a period of deregulation.5.How is“herd mentality”defined?(Para.6)The author defines“herd mentality”by saying
21、 a“herd mentality”sets in and too many brokers rush to buy,driving prices like mercury up a thermometer to levels that prove unrealistic.This definition of“herd mentality”is developed through examples.原句原句：Sometimes,though,a“herd mentality”sets in and too many brokers rush to buy,driving prices like
22、 mercury up a thermometer to levels that prove unrealistic.(Para.6,L3)解释解释:But people are often influenced by their peers.So,a large number of brokers are rushing to buy.As a result,the price of the stock,just as the mercury of a thermometer,rises unreasonably high.译文：译文：不过，有时由于“羊群效应”，众多经纪人蜂拥 热购，股价就
23、像温度计里的水银被一路推至虚高。Sentence interpretation6.Why did the“dot-com”bubble happen?(Para.7)The buzz about the economic possibilities of the Internet encouraged investors to fund the creation of too many dot-com companies.And entrepreneurs wanted to duplicate the results of those that had come before.原句原句：Ma
24、ny investors envisaged wealth for any business with a website that could advertise on TV or billboards,even if their actual services were ambiguous.(Para.7,L4)解释解释:Many investors thought that they would get rich by starting a business with a website that could advertise on TV or billboards,even if t
25、hey were uncertain about what actual services to offer.译文：译文：许多投资者设想在电视和广告牌上给网站打广告来 开展任意业务以牟取财富，尽管他们对自身实际业 务都还模糊不清。Sentence interpretation7.Where do bubbles occur?(Para.8)Bubbles are not only limited to the arena of real estate or“get rich”stock offering.They once occurred to a series of stuffed ani
26、mal toys.any number of intrinsic valuenegative feedback missed out on flock to“greater fool theory”Text summary_ and the winners earn lots of money.B u t t h e e f f e c t s o f a b u b b l e m i g h t _ if many owners of an overpriced asst feel rich and spend foolishly.Stock market bubbles happen w
27、hen a“herd mentality”_ and too many brokers _ buy,driving prices to unrealistic high.Finally further increases are not forthcoming and price drops sharply.When this happens to too many companies _,this is called a stock market crash.In the recent example of“dot-c o m”b u b b l e,v e r y f e w c o m
28、p a n i e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ w h i l e m o s t h a d _ financial difficulties.become cumulativeset inrush toin aggregatebucked the trendblundered intoin retrospectText summary1.any number of sth.很多人；好多某事物2.miss out(on)错过机会；错过3.culminate in 以告终4.set in(恶劣天气、感染等）到来，开始5.in(the)aggregate 总共；作
29、为总体6.blunder into 无意中撞上，陷入Practical phrases很多人；好多某事物很多人；好多某事物(fried chicken/preference)According to peoples different preference,fried chicken can be prepared in any number of tasty ways.any number of sth.短语逆译短语应用根据人们不同的偏爱，炸鸡可以做成各种不同的口味。意群提示Practical phrases错过机会；错过错过机会；错过miss out(on)(balanced/miss o
30、ut on/learning experience)A life of all work and no play is not balanced and may cause the students to miss out on other valuable learning experiences.短语应用只学习不玩耍的生活并不均衡，这可能会使学生错过其它珍贵的学习经验。意群提示短语逆译Practical phrases以以告终告终(despite/culminate in)Despite all the difficulties,our efforts will culminate in
31、success.culminate in短语逆译短语应用虽然困难重重，但通过努力我们最终会取得成功的。意群提示Practical phrases(恶劣天气、感染等）恶劣天气、感染等）到来，开始到来，开始(set in)The kids should go outside and play before the rain sets in.set in短语逆译短语应用再次下雨之前孩子们应该到外边玩玩。意群提示Practical phrases总共；作为总体总共；作为总体(dividends/amount to/in the aggregate)Shareholders of the corpora
32、tion were satisfied as dividends for the year amounted in the aggregate to 10 million dollars.in(the)aggregate短语逆译短语应用因为该公司本年度红利总计达到1,000万美元，所以股东们都很满意。意群提示Practical phrases无意中撞上，陷入无意中撞上，陷入(blunder into/private dispute)It was too late for him to realize that he had blundered into a private dispute.bl
33、under into短语逆译短语应用他意识到自己卷入了一场私人纠纷时，为时已晚。意群提示Practical phrases1.Sb.or sth.does sth.once it becomes clear that用于说明事情发生的必要条件。2.Sth.occurs/happens when用于表达“事情发生的情境”。3.If this situation/problem/is widespread/popular,it can culminate in/end in用于表达“某种情况/问题/发展产生的严重后果”。Functional patterns句型提炼句型提炼一旦价格大大超过潜在消费
34、者购买力的趋势明了，价格就会急剧下跌。原句译文原句译文逆译练习逆译练习The price falls sharply once it becomes clear that it has grown far beyond the purchasing power of potential customers.(Para.1,L4)Functional patternsSb.or sth.does sth.once it becomes clear that句型提炼句型提炼应用提示应用提示意为“一旦某事变得清晰明了，某人就会做某事或某事就会发生”，用于说明事情发生的必要条件。句型应用句型应用Fun
35、ctional patterns(campaign/literacy rate)Campaign to improve literacy rate will be conducted by the government once it becomes clear that education represents the only safe measure to this disease.典型例句一旦了解到教育是治疗这种疾病的唯一安全方案，政府就会开展提高识字率的活动。意群提示Functional patterns如果价格急剧上行引起的是正面而非负面反馈，就会产生经济泡沫。原句译文原句译文逆译
36、练习逆译练习Economic bubbles occur when prices trending sharply upward spur positive,rather than negative,feedback.(Para.3,L1)句型提炼句型提炼Functional patternsSth.occurs/happens when句型提炼句型提炼应用提示应用提示用于表达“事情发生的情境”。句型应用句型应用Functional patterns(generation gap)Generation gap generally occurs when parents and children
37、 hold different values and beliefs.典型例句如果父母和孩子拥有不同的价值观和信仰，就会产生代沟。意群提示Functional patterns此种情形一旦蔓延，终会让银行难以为继,并最终沉重打击发展经济所需的贷款业务。原句译文原句译文逆译练习逆译练习If this situation is widespread,it can culminate in the failure of those banks and a severe crackdown on the lending needed to grow the economy.(Para.5,L4)句型提
38、炼句型提炼Functional patternsIf this situation/problem/phenomenon/trend/tendency/practice is widespread/commonplace/popular,it can culminate in/end in句型提炼句型提炼应用提示应用提示用于表达“某种情况/问题/趋势发展产生的严重后果”。句型应用句型应用Functional patterns(marine species/biodiversity)If this phenomenon is widespread,it can culminate in exti
39、nction of marine species and reduction of biodiversity.典型例句此种现象一旦蔓延，最终会导致濒危海洋物种的灭绝和生物多样性的减少。意群提示Functional patterns 1.价格急剧上行to trend sharply upward 2.扩大效应to amplify the effect 3.升至目眩的高位to reach dizzying height 4.回想，回顾in retrospect 5.节省开支to be economical with ones purchase 6.拖欠借款to default on a loan
40、7.抵制某种趋势to buck the trend 8.廉价出售to sell off 9.大量买进to buy up 10.发大财;暴富to strike it richGenuine collocations a.If this situation is w i d e s p r e a d,i t c a n culminate in the failure of those banks and a severe crackdown on the lending needed to gr o w t h e economy.(Para.5,L4)此种情形一旦蔓延，终会让银行难以为继，并
41、最终沉重打击发展经济所需的贷款业务。Language appreciation b.Sometimes,though,a“herd mentality”sets in and too many brokers rush to buy,driving prices like mercury up a thermometer to levels that prove unrealistic.(Para.6,L3)不过，有时由于“羊群效应”，众多经纪人蜂拥热购，股价就像温度计里的水银被一路推至虚高。Language appreciation c.The buzz about the economic
42、 possibilities of the Internet encouraged investors to fund the creation of many dotcom companies too many it turned out.(Para.7,L2)对互联网经济前景的看好促使投资者们出资创建众多网络公司最终证明是太多了。Language appreciation 许多投资者设想在电视和广告牌上给网站打广告来开展任意业务以牟取财富，尽管他们对自身实际业务都还模糊不清。d.Many investors envisaged wealth for any business with a
43、w e b s i t e t h a t c o u l d advertise on TV or billboards,even if their actual services were ambiguous.(Para.7,L4)Language appreciation1.How do you understand the relationship between peoples greed and economic bubbles?2.What measures should be taken to curb excessive speculation in economic act
44、ivities?3.How do you plan your money,personal finances,or investment in order to prepare for your career?Further discussion1.How do you understand the relationship between peoples greed and economic bubbles?There is an old saying that only two things drive Wall Street:greed and fear.Greed is a desir
45、e that makes men want to grab money,material wealth or physical gratification far larger than what they need.Mans desires are unlimited,and his indulgent behaviors in respect to capital bring economic expansion and then generate a huge economic bubble.When capital greed ultimately makes an economic
46、bubble break,the economy will fall into a depression.Further discussion2.What measures should be taken to curb excessive speculation in economic activities?There are many choices for government to curb excessive speculation in an economy.One of them is taxation,by which the government collects money
47、 from people and businesses.The government can raise taxes to take money out of the economy and lower the inflation rate.To be continuedFurther discussion2.What measures should be taken to curb excessive speculation in economic activities?Another effective method is controlling the interest rate on
48、money it lends to businesses.If the government feels that the economy is growing too fast,the government raises the interest rate.Raising the interest rate will discourage investment in business expansion.Further discussion3.How do you plan your money,personal finances,or investment in order to prep
49、are for your career?Tips are as follows:(1)Have a written monthly budget.(2)Track what you spend ruthlessly every month in order to find places to save.(3)Set financial goals and revisit them often.(4)Spend less money than you earn every month.(5)Save for major purchases.(6)Stop using credit cards.F
50、urther discussionTalk about college students investing in thestock market.Further discussionShould college students be encouraged to invest in the stock market?Obviously,investing in stock markets can benefits college students in any number of ways.To begin with,it provides more opportunities for co
