The “Sheep Rush” phenomenon and the level of social trust during the financial crisis 2008+, the COVID-19 pandemic and chosen armed attacks in the 21st century
The “Sheep Rush” phenomenon and the level of social trust during the financial crisis 2008+, the COVID-19 pandemic and chosen armed attacks in the 21st century

Summary/Abstract: Economic and pandemic crises, along with military actions, constitute a strong cause-and-effectlink between the occurrence of society’s loss of trust in the market environment in the 21st century.The occurrence of unfavourable situations is often related to the “Sheep Rush” phenomenon. Thelack of regulations and effective tools to prevent and counteract market turmoil increases the moodof anxiety. Many consumers and investors, in a situation of ignorance and chaos, begin to imitateemerging market trends. In times of crisis, many citizens begin to buy gold, which increases in valuewith high demand, highlighting the scale of the unfavourable situation. The gold market responds tosocial unrest related to various types of crises. In this case, the appreciation of gold is sudden and theprice trend is not short-term. The occurrence of a negative price on the crude oil futures market duringthe COVID-19 epidemic in May 2020 or the exceeding of the maximum historical limit of $2,100/ounce of gold in December 2023 illustrates the extremes of herd behaviour, which is based on panic. Inturn, the inappropriate monetary policy of the United States based on a low interest rate in 2006 causeda global financial meltdown and continues to exert strong inflationary pressure on the property marketaround the world, including in Poland. The description of macroeconomic events in the 21st centurywell illustrates how important it is for market entities to trust each other and the market, as well as tomake reasonable decisions. Otherwise, we usually deal with a market collapse and a domino effect.The sheep rush process is vital from the point of view of social and economic inequalities due to theimpact of such behaviour on the prices of analysed goods and the level of international trust.

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