On October 19, 1987, the Dow Jones Industrial Average suffered its largest decline in its history. This caused many investors to worry about the possibility of the country heading into another depression. Fortunately, an event similar to the Great Depression did not materialize. Although we did not experience a depression, the ramifications of October 19, 1987 are still felt in today's economy. In order to understand the stock market crash of 1987 and prevent it from occurring again, we must understand first what happened, understand why it occurred, and finally understand what precautions have been taken and still can be taken to prevent an even like this from occurring again. .
The first step in understanding the crash of 1987 is to understand what took place on what is now commonly referred to as "Black Monday." Dallas billionaire Ross Perot described the day as, "God tapping us on the shoulder a warning to get our act together before we get the big shock."(Newsweek 1987) On October 19, 1987 the Dow Jones Industrial averaged experienced its largest single day drop in its history. In one day, the Dow dropped by 508 points to finish at 1738. This 22.6% drop decreased the value of all American stocks by approximately $1 trillion. A 108-point drop foreshadowed this great drop on the previous Friday. Following Friday's drop, stocks immediately began to fall Monday morning. The fall seemed to have cooled down by lunch time but by mid-afternoon a huge sell-off began resulting in a loss of over 500 points for the DJIA. Many investors began to compare this drop to the stock market crash of 1929. Due to the crash of 1929, the Great Depression began. Fortunately, the market rebounded with a 102-point gain on the next day but not before many of the Dow Jones major corporations got hit hard. IBM, DuPont, and Coca-Cola are just a few of the major corporations that suffered losses over 15% in one day.
One place that people looked to make money in the midst of this was the stock market. ... The value of these investments dropped along with the demand and because of the faulty systems within the stock market. ... At the same time, value of the shares traded grew from $27 billion to $87 billion. There was serious imbalance between real investment and stock market speculation. It crashed in 1929. ...
On October 29, 1929 the stock market crashed causing a financial panic throughout America. ... However the crash caught up with him a year later when the public had not bought his cars like they used to. ... It was on the market between 1928 and 1938. ... They allowed for luggage storage and room for the whole family (Richard 87) The automotive Industry has change greatly over the years. ...
"During the 1930s, some 1.3 million Americans migrated to California." The Great Depression was the result of the stock market crash of 1929. People lost jobs everywhere, and so they resorted to migrating and doing farm work. Set in this time period, Of Mice and Men by John Steinbeck writes about tw...
The popular vote was 444 to 87. ... On October 24, 1929 only seven months after Hoover was elected President the Stock market crashed, and that was the beginning of the Great depression, even thought the next spring the economy had seemed to recover, that did not mean it was the end of the Great Depression, it would last until the beginning of the civil war. ...
"A sad soul can kill quicker than a germ," - John Steinbeck. This quote explains a lot about Steinbeck's life and his perspective on the time period in which he lived. The majority of the America at the time was sad, and it seemed easy for many to just give up. Steinbeck lived in a time period that ...
An average day in Los Angeles is four people dying in a gun related crime and the United States faces approximately 87 deaths a day. ... Some experts believe that gun-related deaths/injuries could replace car crashes as the leading death for youths. ... Keeping record of when guns change hands because the selling of firearms in the secondary market is 40%. ...
The Declaration of Independence declares that, "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights that among these are Life, Liberty and the pursuit of Happiness" (Declaration of Independence). Everyone has...
In acknowledgment of her exemplary Catholic life and her contribution to charities, Pope Pius XII named her papal countess in 1952 (Ciccarelli; Cameron 87). ... Joe started earning his millions as president of the Columbia Trust Company in Boston, then from highly profitable investment in real estate, liquor, film production, and finally the stock market. ... Four short years later their daughter, Kathleen, was killed in a plane crash. ...
Various activities, such as drinking alcohol, smoking tobacco, and using psy- choactive drugs, have been prohibited by governments at various times. Os- tensible motives for the prohibitions have included helping people to lead "good- lives (in the opinion of the lawmakers) by keeping them from t...
