Stock Market Crashes of the Last 100 Years: The World Survived Them All
by Let’s learn more about the stock market crashes of the last 100 years, as well as the current Global Financial Crisis of 2008.
The US Nasdaq lost nearly 9 per cent within a week in March 2000. Furthermore, the terrorist attacks on 11 September 2001 caused The Dow to suffer its worst losses which weakened the economy even further.
Recovery
Western countries such as the United States and the European Union were worst hit. They went into recession. However, the market rebounded in 2003.
Importance
The crisis is the most recent example of what happens when a healthy stock market abruptly crashes when it is being pushed up by speculative activity.
SARS and Iraq War (2003)
The Big Crash
The world was badly hit by the Sars epidemic and the Iraq war. Asian economies were forced back into slower growth and recession fears, just when they were starting to recover from the financial crisis of the 1990s.
Recovery
After Sars was contained, many economies including Singapore and China embarked on an economic expansion which was fuelled by the long-delayed property booms, as well as growing demand in exports.
Importance
People remember the downturn as it is still fresh in their minds. Much has been experienced and learnt during the Sars period. As such, countries will be more prepared to combat future epidemics.
The Current Global Economic Crisis (2008)
The Big Crash
The US sub-prime mortgages became worthless when home owners defaulted on their loans. This caused the housing and property market to collapse, which wiped out Wall Street’s revered investment banks. It pulled down companies, stock markets and economies around the world along with it.
On 29 September, the Dow posted its biggest loss in history by falling 777.68 points. As a result, more than US$1 trillion was lost in a single day in the US.
The powerful Group of Seven finance chiefs discussed ways to fight the global economic crisis and to restore confidence in the financial system. (Photo courtesy of Reuters)
Recovery
Countries around the world have come up with drastic measures to counter the financial crisis but recovery is nowhere in sight yet.
Importance
According to experts, this is the closest the world has come in rivalling the Great Depression. With the complex financial system still unwinding by the day, the crisis is nowhere near over. Countries have to stay united to combat it together.
The world has come a long way and has learnt its lessons from past stock market crashes of the century. I am confident it will pull through the current financial meltdown. Let us pray the crisis will end soon. Let us remain as optimistic as we possibly can. Let us stay united together!
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Post CommentLucas Dié
On October 18, 2008 at 7:01 am
Good article! It’s structure is ideal to make further research into the them. Congrats.
And maybe you want to know what is still to come in this crisis? Then read my article on CDSs: http://www.bizcovering.com/International-Business-and-Trade/Will-It-be-Domino-Day-for-the-Banks.300179
larcha
On October 18, 2008 at 8:30 am
Great article! Nicely done. Here is how you make money on Wall Street. http://www.bizcovering.com/Investing/Wall-Street-Scouting-Report-Must-Read-for-Investors.294077
thestickman
On October 18, 2008 at 9:44 am
nice article. informative. well-written.
-thestickman
Anna Ski
On October 18, 2008 at 9:53 am
Very updating, thanks. This time we may not have the same outcome, simply because we cannot predict what lies ahead in the future. I get the feeling that not only is ‘El Nino’ in the weather.
roberto sardelli
On October 18, 2008 at 10:50 am
very interesting, and a at a time like today, very well done
ursula banteux
On October 18, 2008 at 11:29 am
well done article. however, not everyone survives.
John McDonnell
On October 18, 2008 at 12:31 pm
Very well done. I’ve lived through some of these crises, starting with the Oil Shock, and each time disaster was predicted. There was some pain and suffering, but not as much as everyone thought. And we always bounced back. I’m maintaining my optimism that we’ll get through this one just like the others.
Hein Marais
On October 18, 2008 at 1:05 pm
Brilliant Article.
M R Amell
On October 18, 2008 at 1:31 pm
Pretty good. Some points were vague perhaps on purpose and a great deal has been told many times over lately, but a lot has been left out of our national discourse or discussion.
I’m optimistic, but not for the immediate future. In the immediate I think we’re in for a lot of pain yet to be seen by most and perhaps it’s time we bring our prices and costs back in line with what the average person actually earns instead of prices all based on wealthy peoples pocket books.
They (the candidates and media) talk a lot of the middle class, but the poor in this country and many others are being left out to dry in all of this. We’ll survive, but survival is a subjective term too.
Thanks though. Good article.
Ralph Brandt
On October 18, 2008 at 8:53 pm
Barak Hussein Obama was not president
Summer Dawn Hortillosa
On October 18, 2008 at 10:00 pm
good writing. you have a lot of insight and this was well-written.
nobert soloria bermosa
On October 19, 2008 at 6:15 am
timely piece,thanks