Skip to: Content
Skip to: Site Navigation
Skip to: Search

August 28, 2008 4:06:11 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Can 1987's Black Monday Happen Again?

Posted Oct 16, 07 7:49 PM CDT in Business,  US 

(Newser) – Twenty years ago, Black Monday—now, the credit crunch. Haven’t we learned a thing? Yes and no, says MSNBC: Today, "circuit breakers" make a 1987-style sell-off unlikely by cutting off trading at certain limits. And new, tighter mortgage standards will keep credit under control. But greed and fear will again find ways to rock the marketplace.

Black Monday played out in public, as investors wary of overvalued stocks clogged the system with a sell-off. This year’s drama found a new way to unfold, behind closed doors, in “the murky world of credit derivatives and computer valuation models.” Feds saved the system both times by dousing it with money. But Wall Street “hubris” will one day allow a new crisis, as yet unforeseen, warns MSNBC.

Source MSNBC

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Dow Plunges 239 Points

    Jul 28, 08 3:39 PM CDT
    Dow Plunges 239 Points The markets plummeted today as worries over the economy and problems in the financial sector outweighed high spirits over the rescue plan for mortgage giants Fannie Mae and Freddie Mac, MarketWatch reports. The Dow plunged 239.61 to 11,131.08, the Nasdaq nosedived 46.31 to 2,264.22, and the S&P 500 fell 23.39 to 1,234.37.
    More »

  • Buffett Bets Big Against Hedge Funds

    Jun 10, 08 12:16 PM CDT
    Buffett Bets Big Against Hedge Funds Warren Buffett has a lot of money to put where his mouth is. The Oracle of Omaha has bet $320,000 that the market, as measured by the S&P 500, will beat a collection of five carefully selected hedge funds, reports CNNMoney. Taking him on is Protégé Partners, a firm that picks—what else?—mutual funds. More »

  • Techs Give Lift to Markets

    Apr 23, 08 3:38 PM CDT
    Techs Give Lift to Markets Stocks ended slightly up today on mixed news, as techs did well but many financials struggled. "Tech is one of the few bright spots across a sluggish earnings quarter," a market strategist tells the Wall Street Journal. The Dow ended up 42.99 to 12,763.22, the Nasdaq 28.27 to 2,405.21, and the S&P 4.04 to 1,379.98. More »

  • Stocks Dip on Tough Tech Day

    Mar 27, 08 3:28 PM CDT
    Stocks Dip on Tough Tech Day The markets fell today on weak news from the tech and financial sectors. The Dow dropped 120.16 points to 12,302.7, the Nasdaq fell 43.53 to 2,280.83, and the S&P closed down 15.36 at 1,325.77, MarketWatch reports. Disappointing results from bellwethers Oracle and Google sent techs downward, and Lehman Brothers, Bank of America, and JP Morgan also had bearish news. More »

  • Stocks Rebound, Countering Selloff in Financials

    Mar 17, 08 10:17 AM CDT
    Stocks Rebound, Countering Selloff in Financials Stocks steadied after steep early morning losses today, with the Dow actually rising 1.06 points by mid-morning, the Wall Street Journal reports. But financials were still down big, as the Bear Stearns fire sale loomed large over the market. Lehman Brothers, down 22%, was hit the worst, other than Bear itself, which nosedived 87%. Still, at $3.79, it remained stubbornly above its $2 buyout price. More »

USA. New York City. October 20, 1987. Stunned brokers and investors nervously await the beginning of a new trading day at the New York Stock Exchange in the aftermath of "Black Monday." (NYC27754)   (Magnum Photos)
A trio plays on the steps of Federal Hall under a statue of George Washington, across from the New York Stock Exchange, Wednesday morning Oct. 10, 2007, as part of the promotion for the grand opening...   (Associated Press)
CRW_0055   ((c) blackbodypie)
Raging Bull - Wall Street   ((c) Sylvain Leprovost)
« Prev« Prev | Next »Next » Slideshow
Crash and Comeback   (CNBCtv (YouTube))

« Prev« Prev | Next »Next »
Our editors also recommend:

Threads (1 of 2)

Tags

stock market  • Dow Jones  • hedge fund  • Black Monday  • panic


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular


Other US Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »