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Stock Market Crash 1929, 1987, 2000, 2008

 October 07, 2008 11:53 PM


The Stock Market Crash 2007-2008

Stock Market Crash Causes:
  1. Corporate Corruption (as always, even it's not announced yet).
  2. Overvalued Stocks  (as always, even it's not announced yet).
  3. Mortgage crisis.
  4. Over unregulated financial institutions (on my opinion).
  5. Unregulated big speculators playing short (my opinion again - we have now much bigger number of speculators including hedge funds who may play short).
After the Crash:
  1. Bailout of the financial institution????
  2. ???
  3. ???

The Stock Market Crash 2000-2002

Stock Market Crash Causes:
  1. Corporate Corruption.
  2. Overvalued Hi-tech Stocks.
After the Crash:
  1. New Rules for Daytraders;
  2. CEO and CFO Accountability;
  3. Accounting Reforms.

The Stock Market Crash of 1987

[Related -All Quiet on the Record High Front]

[Related -Initial Jobless Claims Rose Unexpectedly]

Stock Market Crash Causes:
  1. No Liquidity. During the crash, the markets were not able to handle the imbalance of sell orders;
  2. Overvalued Stocks.
After the Crash:
  1. Uniform Margin Requirements;
  2. New Computer Systems. Stock exchanges changed to new computer systems that increase data management effectiveness, accuracy, efficiency, and productivity;
  3. Circuit Breakers. The New York Stock Exchange and the Chicago Mercantile Exchange instituted a circuit breaker mechanism, which halts trading on both exchanges for one hour should the Dow fall more than 250 points in a day, and for two hours, should it fall more than 400 points.

The Stock Market Crash of 1929

Stock Market Crash Causes:
  1. Overvalued Stocks.
  2. Low Margin Requirements.
  3. Interest Rate Hikes.
  4. Poor Banking Structures.
After the Crash:
  1. The Securities and Exchange Commission (SEC) was established;.
  2. The Glass-Stegall Act was passed to separated commercial and investment banking activities.
  3.  In 1933, the Federal Deposit Insurance Corporation (FDIC) was established to insure individual bank accounts for up to $100,000.
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(1)
 
4/4/2009 5:28:26 PM
Glass-Stegall by David
Hi,

Interesting about Glass-Stegall, some have wondered whether its repeal caused some of the problems with the markets in 2007.
Rating: (3) (4)

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