What happened on Oct 19 1987?
On Monday, Oct. 19, 1987, the Dow Jones Industrial Average plunged by nearly 22%. Black Monday, as the day is now known, marks the biggest single-day decline in stockhistory. The remainder of the month wasn’t much better; by the start of November, 1987, most of the major stock indexes had lost more than 20% of their value.
Why did the Dow drop in 1929?
The Dow didn’t regain its pre-crash value until 1954. The primary cause of the 1929 stock market crash was excessive leverage. Many individual investors and investment trusts had begun buying stocks on margin, meaning that they paid only 10% of the value of a stock to acquire it under the terms of a margin loan.
Why did the stock market recover from Black Monday?
Because the Black Monday crash was caused primarily by programmatic trading rather than an economic problem, the stock market recovered relatively quickly. The Dow started rebounding in November, 1987, and recouped all its losses by September of 1989.
What is FNMA mortgage?
In 1999, the Federal National Mortgage Association (FNMA or Fannie Mae) wanted to make home loans more accessible to those with low credit ratings and less money to spend on down payments than lenders typically required . These subprime borrowers, as they were called, were offered mortgages with payment terms, such as high interest rates and variable payment schedules, that reflected their elevated risk profiles.
What caused the Dot Com crash?
The primary cause of this crash was overvalued internet stocks. Many investors speculated that dot-com companies, even those without revenues, would one day become extremely profitable. As a result, they poured money into the sector, driving up the valuation of every company with "dot com" in its name.
What happened to the stock market when the debt bubble burst?
Consumers, too, increasingly purchased items on credit. When the debt bubble burst, it caused the greatest stock market and economic crash in modern history.
What caused the stock market to crash in 1987?
No single event caused the stock market to crash in 1987. Instead, a series of factors drove the sell-off, including a widening U.S. trade deficit, computerized trading, and tensions in the Middle East. The rise of program trading, which occurs when computers make automated trades, likely played the biggest role in this crash.
This is a short movie about where is krabi night market. Let’s watch it together. If you have any questions, please reply to this news video.