8 of the biggest stock market crashes in history — and how they changed our financial lives

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The collapse of the stock market similar to October 1929 not only leads to the depression, but also does not disclose a spaced economy. ULLSTEIN BILD DTL. / Contributor / Getty image

• 1. Bustle in 1907
• 2. Die in Wall Street in 1929
• 3. 1987 "Black Monday" death
• 4. Burt of Japanese assets in 1992
• 5. In 1997, Asian economic death
• 6. 2000, Dotsukus burst.
• 7. Reduction of substantial mortgages 2007-08.
• 8. 2020, Cobid 19's death
• FAQ due to an exchange collapse

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• They, including whether or not they confuse temporary pai n-the collapse of the stock market, after that, may have forgotten positive inheritance.
• You can do it so that you can do it so that you are actually a promise, everyone can quickly ignore these seemingly accurate {} people. can.
• The prepositions of the stock market collapse are different, but the final results are similar every time.

The three small sentences are more fearful to the traders' hearts.

The point is not just the loss (another text that scares investors). The point is that there is no possibility when the stock market actually occur s-but this symptom is often displayed afterwards. 。 Not the only official definition.

In principle, the collapse of the stock market is a commercial day in a direction that does not fall at least 10 % in the exchange/ market. However, this still has the potential to "see if powerful volatility is always displayed at any time, and we will consider whether the news of light will come the next day", Terry is a business school at the University of California. I am talking.

Here, we will briefly explain the grounds and results of the most notable exchange transactions in such a situation. Without other provisions, they occurred on our exchanges, which often expanded to other states.

Panic in 1907 has led to the establishment of the federal preparation system and the strengthening of the economic market local governments. Photo 12/ Contributor/ Getty image

1. The Panic of 1907

What actually happened: Trader groups have raised funds from the bank's funds to hunt out United Copper. The pressure of the speculation, UCC was ruined, and other companies followed. Social trust in banks declined, and savings were basically flooded to shoot their own money, leading to escape to ruin.

Damage: Several banks and securities companies went bankrupt, and most of the surviving financial institutions, the top managers, were all resigned or lost. In fact, these companies had no chance to get a bank loan and went bankrupt.

Dr. Corolla Fraidman, a graduate of Kelogu University, Northwestern, said, "We have the insight that" when a certain number of financial institutions broke down, someone had to inject fluid into the system. " At that time, individual finance J. P. Morgan devised a revenue countermeasure to ultimately regain the order of the stock market. Understanding that stock bazaars have become economically important, the U. S. government has developed a federal preparation system to develop financial political figures and supply funds in preparation for the recession.

2. Wall Street Crash of 1929

What actually happened: In the direction of almost 10 years, the stock bazaar continued to grow along the speculation spiral. Due to the reservation of the factory and the flouriness of the "roaring 20s", the buyer basically had a very large amount of debt, and believed that financial products would grow infinitely. Eventually, experienced traders have begun to understand that the situation is overheating. The cost of promotion fell on the 24th, rising for a while, and was free to fall from October 28 to 29. Over the past few days, the average Dow Stock price has fallen by 25 %, which is called the Black Chud Day. As a result, the bazaar dropped by 85 %. < SPAN> Here, we will briefly explain the grounds and results of the most notable exchange transactions in such a situation. Without other provisions, they occurred on our exchanges, which often expanded to other states.

Panic in 1907 has led to the establishment of the federal preparation system and the strengthening of the economic market local governments. Photo 12/ Contributor/ Getty Image

What actually happened: Trader groups have raised funds from the bank's funds to hunt out United Copper. The pressure of the speculation, UCC was ruined, and other companies followed. Social trust in banks declined, and savings were basically flooded to shoot their own money, leading to escape to ruin.

Damage: Several banks and securities companies went bankrupt, and most of the surviving financial institutions, the top managers, were all resigned or lost. In fact, these companies had no chance to get a bank loan and went bankrupt.

3. 'Black Monday' Crash of 1987

Dr. Corolla Fraidman, a graduate of Kelogu University, Northwestern, said, "We have the insight that" when a certain number of financial institutions broke down, someone had to inject fluid into the system. " At that time, private finance J. P. Morgan devised a revenue countermeasure to ultimately regain the order of the stock market. Understanding that stock bazaars have become economically important, the U. S. government has developed a federal preparation system to develop financial political figures and supply funds in preparation for the recession.

What actually happened: In the direction of almost 10 years, the stock bazaar continued to grow along the speculation spiral. Due to the reservation of the factory and the flouriness of the "roaring 20s", the buyer basically had a very large amount of debt, and believed that financial products would grow infinitely. Eventually, experienced traders have begun to understand that the situation is overheating. The cost of promotion fell on the 24th, rising for a while, and was free to fall from October 28 to 29. Over the past few days, the average Dow Stock price has fallen by 25 %, which is called the Black Chud Day. As a result, the bazaar dropped by 85 %. Here, we will briefly explain the grounds and results of the most notable exchange transactions in such a situation. Without other provisions, they occurred on our exchanges, which often expanded to other states.

Panic in 1907 has led to the establishment of the federal preparation system and the strengthening of the economic market local governments. Photo 12/ Contributor/ Getty image

4. Japanese Asset Bubble Burst of 1992

What actually happened: Trader groups have raised funds from the bank's funds to hunt out United Copper. The pressure of the speculation, UCC was ruined, and other companies followed. Social trust in banks declined, and savings were basically flooded to shoot their own money, leading to escape to ruin.

Damage: Several banks and securities companies went bankrupt, and most of the surviving financial institutions, the top managers, were all resigned or lost. In fact, these companies had no chance to get a bank loan and went bankrupt.

Dr. Corolla Fraidman, a graduate of Kelogu University, Northwestern, said, "We have the insight that" when a certain number of financial institutions broke down, someone had to inject fluid into the system. " At that time, private finance J. P. Morgan devised a revenue countermeasure to ultimately regain the order of the stock market. Understanding that stock bazaars have become economically important, the U. S. government has developed a federal preparation system to develop financial political figures and supply funds in preparation for the recession.

A collapse in the value of the Thai bhat caused economic chaos throughout southeast Asia in the late 1990s. Paula Bronstein / Stringer/Getty Images

5. Asia Financial Crash of 1997

What actually happened: In the direction of almost 10 years, the stock bazaar continued to grow along the speculation spiral. Due to the reservation of the factory and the flouriness of the "roaring 20s", the buyers basically had a very large amount of debt, and in fact, they believed that financial products would grow infinitely. Eventually, experienced traders have begun to understand that the situation is overheating. The cost of promotion fell on the 24th, rising for a while, and was free to fall from October 28 to 29. Over the past few days, the average Dow Stock price has fallen by 25 %, which is called the Black Chud Day. As a result, the bazaar dropped by 85 %.

Damage: The death of 1929 was not a prerequisite for the magnificent crisis behind it, but it was a signal that caused a major financial crisis and worsened. As a result of panic to withdraw funds, the bank collapsed and the deposits were saved. Companies that lost their creditors began to collapse due to the shortage of products. In fact, up to 25 % of Yankees were unemployed, deprived of property and means of transportation, and fell into poverty that led to motivation. Gross domestic production (GDP) decreased by 30 %. Financial disasters spread overseas and hit Europe more directly.

In fact, a series of reforms and new laws were enforced. In 1933, the Glass Sistigola Law separated retail banking work from investment work and established a federal deposit insurance company for bank stock insurance. In order to ensure cautious attending and conscientious competition, a law to revive the public sector was established, the Securities and Exchange Commission (SEC) was established, and the stock market was monitored and traders defended.

6. Dot-Com Bubble Burst of 2000

The new, unpopular automatic trading program has actually strengthened its promotion rate, which led to failure in 1987. AFP = Photo provision / Getty image

What happened: The decline in oil tariffs and the intensity between the United States and Iran made Bazaar pessimistic. However, it was impossible because it was 58 years since the crash in 1929, which led to the crash on October 19, but made it possible for brokers to make more large and fresh orders. It was a relatively new distribution of the automatic trading program. For a crow, it is difficult to stop trading when the cost begins to fall. As a result, Dow and Samp & amp ;; pp; p 500 fell more than 20 % of the total and Nasdaq dropped 11 %. The overseas stock market was still falling.

Fortunately, the crash did not lead to recession or trouble. Investor Blair Hull made a large order on the Chicago Exchange option on the Black Monday and definitely contributed to correcting the story. The main victims of the bankruptcy were customer trust. In short, marching says it was a "water supply problem" related to computer technology that "feared people." < SPAN> Damage: The death of 1929 was not a prerequisite for the spectacular depression behind it, but it was a signal that caused a major financial crisis and worsened. As a result of panic to withdraw funds, the bank collapsed and the deposits were saved. Companies that lost their creditors began to collapse due to the shortage of products. In fact, up to 25 % of Yankees were unemployed, deprived of property and means of transportation, and fell into poverty that led to motivation. Gross domestic production (GDP) decreased by 30 %. Financial disasters spread overseas and hit Europe more directly.

In fact, a series of reforms and new laws were enforced. In 1933, the Glass Sistigola Law separated retail banking work from investment work and established a federal deposit insurance company for bank stock insurance. In order to ensure cautious attending and conscientious competition, a law to revive the public sector was established, the Securities and Exchange Commission (SEC) was established, and the stock market was monitored and traders defended.

7. Subprime Mortgage Crisis of 2007-08

The new, unpopular automatic trading program has actually strengthened its promotion rate, which led to failure in 1987. AFP = Photo provision / Getty image

What happened: The decline in oil tariffs and the intensity between the United States and Iran made Bazaar pessimistic. However, it was impossible because it was 58 years since the crash in 1929, which led to the crash on October 19, but made it possible for brokers to make more large and fresh orders. It was a relatively new distribution of the automatic trading program. For a crow, it is difficult to stop trading when the cost begins to fall. As a result, Dow and Samp & amp ;; pp; p 500 fell more than 20 % of the total and Nasdaq dropped 11 %. The overseas stock market was still falling.

Fortunately, the crash did not lead to recession or trouble. Investor Blair Hull made a large order on the Chicago Exchange option on the Black Monday and definitely contributed to correcting the story. The main victims of the bankruptcy were customer trust. In short, marching says it was a "water supply problem" related to computer technology that "feared people." Damage: The death of 1929 was not a prerequisite for the magnificent crisis behind it, but it was a signal that caused a major financial crisis and worsened. As a result of panic to withdraw funds, the bank collapsed and the deposits were saved. Companies that lost their creditors began to collapse due to the shortage of products. In fact, up to 25 % of Yankees were unemployed, deprived of property and means of transportation, and fell into poverty that led to motivation. Gross domestic production (GDP) decreased by 30 %. Financial disasters spread overseas and hit Europe more directly.

8. The COVID-19 Crash of 2020

In fact, a series of reforms and new laws were enforced. In 1933, the Glass Sistigola Law separated retail banking work from investment work and established a federal deposit insurance company for bank stock insurance. In order to ensure cautious attending and conscientious competition, a law to revive the public sector was established, the Securities and Exchange Commission (SEC) was established, and the stock market was monitored and traders defended.

The new, unpopular automatic trading program has actually strengthened its promotion rate, which led to failure in 1987. AFP = Photo provision / Getty image

What happened: The decline in oil tariffs and the intensity between the United States and Iran made Bazaar pessimistic. However, it was impossible because it was 58 years since the crash in 1929, which led to the crash on October 19, but made it possible for brokers to make more large and fresh orders. It was a relatively new distribution of the automatic trading program. For a crow, it is difficult to stop trading when the cost begins to fall. As a result, Dow and Samp & amp ;; pp; p 500 fell more than 20 % of the total and Nasdaq dropped 11 %. The overseas stock market was still falling.

Fortunately, the crash did not lead to recession or trouble. Investor Blair Hull made a large order on the Chicago Exchange option on the Black Monday and definitely contributed to correcting the story. The main victims of the bankruptcy were customer trust. In short, marching says it was a "water supply problem" related to computer technology that "feared people."

Stock market crash FAQ

As a result, the financial world realized that stock exchanges around the world were interconnected. The Securities and Exchange Commission introduced circuit breakers, which halted trading for the day if an exchange's stock price fell by a certain amount. To ensure liquidity, then-Federal Reserve Chairman Alan Greenspan maintained credit and declared, "The Fed has your back," says Mark Chandler, chief market strategist at Bannockburn Global Forex.

What happened: In the 1980s, Japan's real estate and stock markets saw unprecedented growth. Initially buoyed by fundamental economic growth, the market fell into a speculative spiral by the end of the decade. In 1992, the real estate and stock bubbles finally burst.

The damage: The Nikkei average fell by almost half, heralding the arrival of a small, slow recession in Japan. Marsh says that while "fine dining is not as active," closures are not widespread. American investors didn't take a big hit because their portfolios usually only contain a small number of Japanese stocks. But Japanese investors never fully recovered their confidence in the stock market.

What causes a stock market crash?

The Japanese government tightly controlled its financial system. "The Japanese government was very strict," says Tyler Muir, assistant professor of finance at the UCLA Anderson School of Management. In fact, the 1990s are known as Japan's "lost decade."

What happened: On July 2, 1997, Thailand, under pressure from borrowing too many U. S. dollars, crashed its currency, the baht.

• As a result, Marsh says, "East Asia learned a lesson in self-insuring," as the International Monetary Fund imposed austerity measures in exchange for a bailout. And the crash raised awareness of the interconnectedness of regional financial markets and the economy.
• Damage: Pets. com, toys. com, and Webvan. com have withdrawn from business, and many other large and small Internet companies have withdrawn. A major technology company in Blue Chips was also hit.
• When the parent company Lehman Brothers went bankrupt in 2008, the stock market, which had already swayed by the collapse of the real estate market, caused even greater panic. Nikolai Roberts / Stringer / Getty Image
• Damage: Lon g-established Bear Stars and Lehman Brothers, a large financial company who invested a large amount of real estate securities went bankrupt. Muer says that the bank could not get a loan because he did not know who he could trust. The unemployment rate approached 10 %. The bankruptcy spread overseas, and on October 8, 2008, the Nikkei Stock Average fell by nearly 10 %. The United States has entered the Great recession and officially continued until 2009, but the economic recovery remained sluggish for years.

As a result, the federal government rescued the weakened financial institutions (TARP), and managed other institutions, such as Fanny Mei and Freddy Mac, which had suffered management difficulties. The 2010 Dodd Frank Law (Wall Street Reform and Buyer Defense Law) regulated swaps and other exotic investments for the first time, led to the establishment of the Buyer Economic Defense Bureau.

What actually happened: By the early 2020s, COVID-19 spread widely in China, then in Europe (especially Italy), and in the United States, restaurants and shops closed for essential reasons to stop the flow of infections. did.

The stock market began to tremble as the traders understood how Coronovirus spread and adversely affect the economy. On March 16, when the permanent rockdown was announced, the average of 30 Dow Industrial shares fell by about 13 %, S & amp; AMP; P500 type average dropped by 12 %.

Damage is large: some companies have fired and layoffs, and some companies have been closed forever. Restaurants were limited to delivery and some table services. Travel regulations influenced the aviation industry and the hotel industry. The human damage of COVID Pandemic was disastrous, killing more than 300, 000 people in the United States and 1. 5 million worldwide. According to the Central for Economic and Political Values, more than 31 million people are unemployed or unemployed as of September 2020.

What happened: The 2020 CARES law extended unemployment benefits, and the local government's economic stimuli measures were definitely useful for the floating Yankees. The stock market has risen due to the rise in stock prices of e-commerce companies such as Amazon, personal defense equipment manufacturers, and pharmaceutical companies. Almost all of the companies that allowed their employees to take leave during the COVID crisis said they would continue to leave after the pandemics, but UIR said, "It's unknown whether this will be a permanent transition."

What happens if the stock bazaar continues? The Chevron icon is displayed in the deployable sections and diets, sometimes in the previous/ next navigation function.

What is a stock market correction?

If the stock market collapses, the results may be different. Sometimes it happens. For example, on October 19, 1987, a strong "bullish" market for five years, the 30 species of Dow Industrial Stocks (DJIA) and S & Amp; Samp; A) dropped by more than 20 % in Asian and Europe markets. did. The crash was shor t-term, and the market quickly recovered. In some days, DJIA regained more than 43%of the lost points, and Bazaar recovered almost 100%in almost two years.

In other cases, the results occur in large and long term. The most famous model is the death of 1929. Promotional costs initially fell on October 24, rising for a while, and were free to fall from October 28 to 29. As a result, the bazaar collapsed by 85 %. However, this death was not a transient thing, one of the magnificent depression, that is, the consistency of the American situation, which lasted for nearly 10 years.

Historically, the stock market meltdown often occurs in lon g-term financial and market rising. Trust in the economy, sustainable increase in promotion, low-level incomplete employment-all of these are the driving force, as this stable rise is called a "bullish" market. However, costs are unlikely to grow indefinitely, and bullish rates can be all for a long time. It can be caused by a collective voting replacement as in 1929, but in principle, there are specific events that accelerate the rise.

The collapse of the stock market can be caused by a wide variety of basses:

universe

The bottom line on stock market crashes

panic

universe

Nature or technical accident

universe Economic decline

universe

Speculation

Is it possible to avoid the death of the stock market? The Chevron icon is displayed in the extended sections and diets, sometimes in the previous/ next navigation function.

In fact, there is no way to prevent the death of the stock market. At least, the government has taken cautious measures to prevent rapid fall and market intensity. One of these tactics is a sel f-worked switch introduced by failure in 1987. If the S & amp; mp; P500 index falls by more than the previous day, the auction will stop in all US stock markets. Individual traders have a chance to get a large number of promotions to stabilize the bazaar. In fact, this method was very valid 100 years ago, shortening the panic period in 1873 and 1907. The government itself has the ability to be involved in history by reducing interest rates and encouraging traders to recover and acquire loans. However, everything is the same, including such a mitigation moment. What do you do if the stock bazaar collapses? The Chevron icon is displayed in the extended sections and diets, sometimes in the previous/ next navigation function. Economic decline

universe

Speculation

Adjustment of the stock market can occur for various reasons. As a result of almost all traders pursuing market trends, if people get a promotion, the fact that they believe, the commissions will rise quickly, otherwise their leads will soon. You will follow. This leads to a promotional price. When this happens, some traders with promotion have all the opportunities to realize them to gain advantage, like others, like other people. It will lead to a temporary decline in cost.

• The difference from the bear market is that adjusting the stock market often occurs in a short period of time and usually ends alone. On average, adjustment lasts within 4 months.

• In many cases, including whether or not they interfere with temporary pai n-more crashes that fall on the stock exchange show how to have all the opportunities to forget positive inheritance. Masu.
• The behavior that causes the collapse of the exchange may be the most diverse, from copper manians to housing duties, but what is the final result? Bazaar recovers.
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