Skip to content
Econowmics
Menu
  • Home
  • Economics
    • Econometrics
    • Economics and History
    • Macroeconomics
    • Microeconomics
    • Miscellaneous
      • Awards and Honors
      • Economic Schools of Thought
      • Economic Quotes
      • Economic Videos
    • Terms and Concepts
  • Cognitive Biases
  • Data Analysis
    • Statistics
    • Python Programming
  • Contact
Menu

Black Monday

Posted on
The Guardian
The Guardian explaining the Black Monday.

 

On October 19, 1987 stock markets around the world crashed, a global financial crisis which started from Hong Kong and was spread to Europe and the United States as well. It came be to known as the Black Monday.

 

James Marshall/Corbis via Getty Images

 

Wall Street went mad. The Dow Jones Industrial Average fell 508 points (22%) to 1738.74, a $500 billion decrease in value which is still the biggest one-day loss in the history of the index. S&P 500 also dropped 57.64 points (20.4%) to 225.06.

There have been numerous reasons as to why this massive drop happened. Although many blame stock trading programs of the time for the crash, but the most common belief is that fear and panic were the main reasons for the 1987 financial crisis.

 

Black Monday - Mario Cabrera/AP
Mario Cabrera/AP
New York Stock Exchange trading floor
New York Stock Exchange trading floor on Black Monday (Peter Morgan/AP)
New York Stock Exchange Traders
New York Stock Exchange Traders/AP
AP/Mario Suriani
AP/Mario Suriani
The Independent/Rex Features
First Union Brokerage Services, the following day
First Union Brokerage Services, the following day/AP/Kathy Willens
Photo: Andrew Popper
NYSE Chairman John J. Phelan, Jr.
NYSE Chairman John J. Phelan, Jr/Photo: Andrew Popper
Photo: Maria Bastone/AFP/Getty Images

 


Also watch

https://www.youtube.com/watch?v=Vnnq9qc9rPw

 


Further Reading

 The Crash of ’87, From the Wall Street Players Who Lived It

Related posts:

Milton Friedman Prize for Advancing Liberty
Inequality
Information asymmetry: The battle for data
Daniel Kahneman
The Cobra Effect: Unintended consequences

Anything in here will be replaced on browsers that support the canvas element

  • Amos Tversky
  • Daniel Kahneman
  • cognitive bias
  • Milton Friedman
  • Wealth of Nations
  • Nobel Prize Laureate
  • Adam Smith
  • 20:20 ratio
  • law of small numbers
  • the halo effect
  • wealth inequality
  • income inequality
  • Law of Large Numbers
  • Dow Jones Industrial Average
  • status quo bias
  • Behavioral Economics
  • daniel kahnemann
  • hyperinflation
  • the gambler's fallacy
  • gambler's fallacy
©2023 Econowmics | Design: Newspaperly WordPress Theme