Stock Market Crashes: Five Stock Market Downturns Since 1929

Famous Stock Market Crashes:
Black Thursday
Black Monday
Dot Com Bubble
Friday the 13th Mini-Crash
The Financial Crisis of 2008

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For many, the Financial Crisis of 2008 is the first stock market crash to which they've paid attention.

However, there have been much worse financial market setbacks over the last 80 years.

It might be pointed out that downturns in the stock market are often corrections in overpriced stocks.

DBKP takes a look at five of the stock market crashes during that time and their impact.


From Wikipedia:

A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. In parallel with various economic factors, a reason for stock market crashes is also due to panic. Often, stock market crashes end speculative economic bubbles.

Famous stock market crashes

Black Thursday - October 24, 1929

The Dow Jones Industrials lost 50% of their value on Black Thursday.

Black Thursday kicked off the Great Depression, from which the USA didn't emerge for 10 years--until World World II put the country back to work.


The Crash of 1973-74

From January 11 1973 to December 6 1974,

• the Dow lost over 45% of its value.
• The London Exchange lost 73%
• The stock markets of the G7 lost an average of 43% over the period

It took the US stock market--as well as other markets around the world--as long as 10 years before the market recovered its pre-crash value.


The Dom Com Bubble of 2000

"The Dot-com bubble crash wiped out $5 trillion in market value of technology companies from March 2000 to October 2002."

Although many Internet companies went bankrupt in the Dot Com Crash of 2000, many others survived, including Amazon.com, Ebay and Yahoo.


Black Monday - October 19, 1987

The Dow fell by almost 23% on Black Monday. Within a few weeks, other exchanges around the world also fell by the following amounts.

• The Dow Jones fell by 22.6%
  
• Australia lost 41.8%
• Canada lost 22.5%
• Hong Kong lost 45.8%
• Great Britain lost 26.4%

Automatic sell orders and selling short automatic orders were blamed, in part, for the crisis on Black Monday.



Friday the 13th Mini-Crash - October 13 1989

"...the Dow Jones Industrial Average was down 190.58 points, or 6.91 percent, to 2,569.26. The NASDAQ Composite shed 14.90 points, or 3.09 percent, to 467.30, and the S&P 500 Index fell 21.74 points, or 6.12 percent, to 333.65."

The US stock market recovered the blip of the Friday the 13th Mini-Crash relatively quickly.


The Financial Crisis of 2008

"Beginning October 6, 2008, the Dow Jones industrial average fell over 1,874 points, or 18%, in its worst weekly decline ever on both a point and percentage basis."

The market rallied before the election on November 4 2008, then resumed its steady movement downward following the election of Barack H. Obama.

The final verdict on the Financial Crisis of 2008 is yet to be rendered.


by Mondo Frazier
image: dbkp file
Source:
* 1973–1974 stock market crash
* Dot-com bubble
* Stock Market Crash

St. Louis Bomb Blast: Economic Terrorism?

Bomb Blast in St. Louis Parking Garage
Injures Prominent Takeover Attorney

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As they hunt for the person(s) responsible for a Thursday morning bomb blast that injured John Gillis, investigators are likely considering the possibility the incident might somehow be linked to the current economic crisis. And for good reason.

Gillis, is senior counsel at Armstrong Teasdale, a large law firm based in downtown St. Louis, according to a St. Louis Post-Dispatch report published today. A bio page on the prominent law firm's web site attributes a number of "significant accomplishments" to the 69-year-old St. Louis attorney, including:

* Counsel to seller in $210 million sale of Nasdaq listed company in negotiated tender offer followed by a back-end merger;

* Counsel to seller in $500 million sale of Nasdaq listed bank holding company;

* Issuer's counsel in $50 million dutch auction self tender offer for common shares; and

* Counsel to boards of directors or special board committees in a number of negotiated and hostile takeover transactions.

Just after 11 a.m. yesterday, according to witness accounts, Gillis attempted to move a package from near his vehicle parked on the sixth parking level of a 16-story office building adjacent Gillis' condo-building home in Clayton, an affluent St. Louis suburb. As reported in this post yesterday, the bomb blast shook the downtown area and prompted evacuations of area buildings.

Considering the type of work Gillis has performed, the enormous amounts of money at stake and the heady personalities often involved in such high-stakes transactions, it will be interesting to find out whether or not this crime indeed has its roots in the economic crisis or if some other motivating factor — personal, professional, terrorism or other — was in play.

---

ALSO at Bob McCarty Writes: Bomb Explodes in St. Louis Parking Garage! (Updated)

by Bob McCarty
image: Bob McCarty Writes
Source: Does St. Louis Blast Have Ties to Economic Crisis?

Twenty-five Financial Bailout Quotes

Twenty-five Quotes about the
Financial Bailout




Twenty-five quotes about the proposed financial bailout by those involved: politicians, watchdogs, candidates and the media.



This meeting ended bad - real bad.”
--Fox News source
On the financial bailout meeting at the White House September 25, 2008



"There are disagreements over aspects of the rescue plan," he said, "but there is no disagreement that something substantial must be done. We are going to get a package passed."
--President George W. Bush
'We are going to get a package passed': Bush, September 26 2008


"I don't think a president has been repudiated so strongly by the congressional wing of his own party in a very long time now. Maybe this isn't the last word, but that's where we are now."
--Rep. Barney Frank
'We are going to get a package passed': Bush September 26 2008


"I do not regard Fannie Mae and Freddie Mac as problems. I regard them as great assets."
--Barney Frank
In response to efforts to reform Freddie Mac and Fannie Mae 2002

ALSO at DBKP: DBKP Library of Quotes OVER 30 collections of Quotes by Sarah Palin, W.F. Buckley, John Edwards Scandal, Don King, Liberals, and more.

“All of us around the table take this issue very seriously and we know we’ve got to get something done as quickly as possible."
--President Bush
Deal for Financial Bailout Disintegrates as Obama, McCain Look On



“We must protect taxpayers and limit the Treasury’s powers. We must prevent those who contributed the most to this crisis from further profiting. We must establish strong oversight with a permanent in-house watchdog and a robust external congressional monitor."
--Rep. Paul Kanjorski (D-PA)
Kanjorski asks bailout that protects taxpayers, September 25, 2008


"The top five [Sen. Christopher Dodd, Sen. John Kerry, Sen. Barack Obama, Sen. Hillary Clinton, Rep. Paul Kanjorski] received nearly one-half million dollars from the FMx2 [Freddie Mac and Fannie Mae]."
--"Contributions: Obama, Dodd and the Freddie Fannie Five"
DBKP, September 26, 2008


"CBS News found 21 former staffers from the Senate Banking, Housing and Urban Affairs and House Financial Services Committees are now lobbyists for financial firms. Their job? To lobby those in Congress who will shape the financial bailout. The former staffers now represent hedge funds, private equity firms, investment banks and the failed mortgage giants Fannie Mae and Freddie Mac."
--Who’s Lobbying Congress On The Bailout?
CBS News, September 26 2008



“There should be a three year cooling off period so former staffers do not have these intimate relationships that they exploit for large paychecks.”
--Joan Claybrook, president of Public Citizen
On former Senate staffers lobbying for Freddie Mac and Fannie Mae,
Public Citizen has actively pushed for more lobbying transparency and accountability



"He [John McCain] hasn't been involved. He doesn't know anything about it. This is a stunt. I hope people will be able to ignore it."
--Rep. Barney Frank
US Rep Frank: House, Senate Dems agree on bailout


"I think Wall Street will get over it."
--Barney Frank
On the possible collapse of Freddie Mac and Fannie Mae April 2004


"We do not support government bailouts of private institutions."
--2008 Republican Party platform

"One of the major government privileges granted to GSEs is a line of credit with the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion. This explicit promise by the Treasury to bail out GSEs in times of economic difficulty helps the GSEs attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a huge unconstitutional and immoral income transfer from working Americans to holders of GSE debt."
--Rep. Ron Paul
To the House Financial Services Committee, September 10, 2003

"I don't think a single call to my office on this proposal has been positive."
--Sen. Sherrod Brown (D-OH) at the Senate hearing, September 23 2008



"Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.

If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole."
--John McCain on the Regulatory Reform Act of 2005
US Senate, May 25 2006


"It [REGULATORY REFORM ACT OF 2005] never made it out of committee. Chris Dodd, then the ranking member of the Banking Committee and now its chair, was in the middle of receiving preferential loan treatment from Countrywide Mortgage, one of the companies gaming the system in the credit crisis."
--Democrats.org September 25 2008



“It was a photo op for John McCain. … It was a rescue plan for John McCain.”
--Senate Banking Chairman Chris Dodd (D-CT)
Deal for Financial Bailout Disintegrates as Obama, McCain Look On, September 25 2008

Though Sen. Chris Dodd implied that Sen. McCain sandbagged the rest of the negotiators by bringing up alternative proposals, McCain himself did not bring up those proposals, according to four independent sources briefed by four different principals inside the meeting, including two Republicans and two Democrats.

"McCain has not attacked the Paulson deal," said a third Republican who was briefed by McCain direclty. "Unlike the [Democrats] in the [White House] meeting, he didn't raise his voice or cause a ruckus. He is urging all sides to come together."
--Marc Armbinder, The Atlantic
"What Happened In The Cabinet Room...

"People who want to be president need to be able to walk and chew gum at the same time."
--Obama Sr. Advisor Brad Woodhouse
On MSNBC, September 26 2008


"[Chistopher]Dodd,[and Barack] Obama got nearly a quarter-million dollars from Freddie, Fannie"
--Contributions: Obama, Dodd and the Freddie Fannie Five
DBKP, September 26 2008


"A week ago, Senator Obama laid out his principles."
--Obama Sr. Advisor Brad Woodhouse
On MSNBC, September 26 2008


"Barack Obama was able to appear in Washington, while his principles were in Florida."
--E.K. Clark
DBKP, September 26, 2008


"Meanwhile, Barack Obama took hundreds of thousands of dollars from the lobbyists McCain mentions in this speech, making him the #2 recipient of Fannie/Freddie money."
----Democrats.org September 25 2008

"Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. ... To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection--a procedure that can only lead to a much more severe crisis as soon as the credit expansion comes to an end. ...It is probably to this experiment, together with the attempts to prevent liquidation once the crisis had come, that we owe the exceptional severity and duration of the depression.We must not forget that, for the last six or eight years, monetary policy all over the world has followed the advice of the stabilizers. It is high time that their influence, which has already done harm enough, should be overthrown."
--F.A. Hayek, Nobel prize winner
June 1932

"As it became clear to Paulson that Republicans weren't backing his plan, he called Sen. Lindsey Graham (R-SC) urging him to bring McCain back to Washington in order to broker a deal the GOP could get behind. As a new plan was put forth Thursday, Democrats saw this as an opportunity to undermine McCain by creating the illusion he was to blame for the negotiations breaking down.

Democrat after Democrat was sent before cameras, microphones, and tape recorders to belittle the Senator from Arizona and create the appearance that the financial bailout took a wrong turn due to his appearance at the negotiating table.

Now, with the deal seemingly dead, the Democrats are saying they're behind the Paulson plan. If it succeeds, they can take all the credit; if it dies, they can blame it completely on McCain and the Republican party."
--Noel Sheppard, NewsBusters
"AP Publishes McCain-Bashing Bailout Piece Olbermann Should Love"


compiled by Mondo

Financial Bail-out: Govt. Interference Caused Govt. Bailout

Caution: Government at Work
Financial Problems are Government's Fault in the First Place
The Political Capitalist Different from True Capitalist





September 17 was Constitution Day. The federal government celebrated by staging the largest intervention into the private sector in history. With an injection of $85 billion of our tax dollars, our federal government now owns a majority stake in insurance giant, American International Group.

AIG should fit nicely with the two mortgage giants, Fannie Mae and Freddie Mac that our government seized last week. Of course, Fannie and Freddie also came with liabilities of more than $5 trillion worth of mortgages, which are now liabilities of the U.S. taxpayers. Not to worry, the government doesn't intend to incorporate the assets or liabilities of Fannie and Freddie onto the federal books, for now.

The outgoing CEO's of the failed Fannie Mae and Freddie Mac will be leaving with a $24 million severance package, also paid for with our tax dollars. Ditto with failed giant AIG. Even though AIG shares have dropped 94 percent since Robert Willumstad, was named chief executive officer on June 15, this soon to be ex-CEO may get a $7 million exit package after a Federal Reserve take-over forces him out. Had enough yet? Hold on, there's more.

The Big Three’s chief executive officers are now in Washington, tin cups in hand. They were granted a rare Capitol Hill meeting Wednesday with House Speaker Nancy Pelosi and other Democratic leaders to ask for $25 billion in government loans for the auto industry.

Meanwhile, Congress has just approved and sent to President Bush an $8 billion rescue package for the federal highway trust fund. Apparently its going broke, which threatens road and bridge projects in every state.

Government bailouts, in effect, use our tax dollars to reward bad behaviour, while at the same time, putting more and more private business under government control. While America's eyes are eagerly following the presidential election, our government is turning the US into a corporate welfare state. Its called socialism, and it has failed everywhere its been tried.

No doubt, these business failures will be used as a further indictment of capitalism. But, as Burton Fulson points out in his book, 'The Myth of the Robber Baron,' there are two very different types of capitalists operating in America.

The true capitalists, the market entrepreneurs, are subject to the vagaries and risks of the market and fail or succeed based strictly the age old rule of supply and demand. The political capitalists are entrepreneurs whose fortunes are not determined by market forces as much as they are by political forces.

Political capitalists, instead of relying on market forces, rely instead on politicians and the political process to further their own interests and undermine their competitors'. This appears to be the case with both AIG and mortgage giants Fannie Mae and Freddie Mac.

As Jennifer Rubin points out in Commentary, Fannie Mae and Freddie Mac "survived by manipulating, cajoling and lobbying politicians and hiring board members who were politicos (e.g. Jamie Gorelick) rather than mortgage gurus. They hired lobbyists, gave massive donations, obtained nice tax breaks and sailed below the regulatory radar screen."

Ditto for investment bank Lehman Brothers, which also failed this week. The government chose not to bail Lehman out, despite the $395,574 in campaign donations to Obama and the $145,100 to McCain. Go figure.

A selection of conservative books available.


Political fingerprints are found all over every single failed business, from the 'favorable' mortgages to politicians, to the campaign contributions, to the lack of regulatory oversight by key members of banking and regulatory committees.

As the blame game starts, as politicos start to distance themselves from the very policies that contributed to the failures, expect more of our tax dollars to be spent on CYA activities. That's liberal speak for 'plausible deniability.' House Speaker Nancy Pelosi was first out of the gate, announcing the launch of an investigation of Wall Street. This should make for good theater, if you're into sound and fury that signifies nothing.

When the dust finally settles, the federal government will have ever more power over the housing industry, the mortgage industry and the banking industry. Next up will most likely be the airline industry. All justified under the rubric of protecting the American people. The question never asked is: What government program, other than the military, works?

Most American's don't have to spend millions of dollars, summon legions of experts, and study the vast intricacies of the latest politically correct theory on how the market works in order to see the obvious. Most of us know we just need to get politics, politicians and our tax dollars out of the private market, and allow it to work. Its called capitalism.

by Nancy Morgan
Right Bias.com

Nancy Morgan is a columnist and news editor for RightBias.com
She lives in South Carolina

Article may be reprinted with attribution

Nationalization: Romania, the USA, Financial Panic and Politics

"Waiter, There a Banker in My Soup..."
Babba Zee
Outraged Spleen of Zion

IT'S A COOKBOOK!!!!

El Predicto Sez: Next thing to be Nationalized? Oil & Energy Companies

After that? Railroads, Airlines, Aerospace Corps, Tech Co's, Auto & Steel Manufacturers & Farms

It ain't rocket science, it's history ... NATIONALIZATION

JUNE 2008: Another Democrat calls for Nationalizing Oil Refinery Industry

2005: Automakers Are Lining Up Aid, But Just Don't Call It a Bailout

SEPTEMBER 7, 2008: Detroit's sputtering Big Three turn to Washington for help

AUGUST 2008: The Great American Bailout: Costs, Repercussions and the End of U.S. Financial Domination

AUDIO: The long history of federal and corporate bailouts

Creative Destruction

Bank of America, Merrill Bailout Disguised as Buyout?

PLEASE, FORGIVE HIS ENGLISH:

After World War Two, under the soviet army occupation and a large collaborationism from the impoverished and free stated people, Romania became Republic of the People and the National Bank of Romania was nationalized, becoming Bank of the State. On the mean time, the whole banking system was nationalized were interrupted the links with western capitalist countries. In Romania under soviet influence became to be put on practice the economy and social organization from the Soviet Union.

From World War Two to 1990 the Bank of the State had absolute control on the financial flow and accumulated all of the banking operation. In ‘70s and ‘80s, for more than two decades, in the multilateral developed socialist society, in Romania existed yet, only 4 banks, like The Romanian Bank of Foreign Trade, The Bank of Agriculture and Food Industry , The Investment Bank and the House of Savings and Securities(CEC), all of them public companies, strictly controlled by the Bank of the State.

The activity in this commercial banks was one of routine, predictable planned, without too much thrills. Only one of this ones, the House of Savings and Securities assumed the savings of the people, the offer of financial products being really low, rudimentary, the period of time to make a deposit was initially win for one year long, later for win six months, and the interest rate was symbolic, somewhere between( 0.5-3%) without much fluctuation.

The Lonely Shepherd ~ Traditional Romanian Song
Gheorghe Zamfir**, Pan Flute ~ Arrangement: James Last

The other commercial banks were working with public companies only, companies from industry , agriculture, only the Romanian Bank of Foreign Trade was involved in import-export financial activities. For the people, at the time, a so called crediting was possible only by the mean of the Reciprocal Aid Houses, organized on economic activity branches. The reform begins at the end of 1990, one year after the December 1989 revolution, being projected a banking system on two levels:

- on the first level, the Bank of State was been reorganized, being renamed the National Bank of Romania , and for commercial activities of the ex-Bank of the State till that moment, was been established the Romanian Commercial Bank (BCR).

- on the second level, by Government Decision, the former 3 public banks: the Romanian Bank of Foreign Trade, the Bank of Agriculture and Food Industry, the Investment Bank were transformed in commercial banks with public capital, diversifying its activities.
On the mean time from 1990 till 1992 were been established new private commercial banks, on the 31/1990 law basis, a special banking law wasn’t yet available.

Only at the end of 1991, the law 33/1991 regulates the banking activities for commercial banks, and the law 34/1991 approves an status for the NBR, about two years after the December ’89 revolution. The declared objectives of the NBR were mostly:
1- the stability of the Romanian currency LEU
and
2- the stability of the staple products and services.

Soon in ‘90s by speculating the legislative and authority emptiness, the corruption of the state administration and the lack of experience of the majority of people concerning the market economy, almost everything was possible for the unscrupulous.

The passing from the socialist society with predictable and planified economy and banking to the western open market economy made evident soon after 1990s, the lack of strategy in the NBR management and in the Romanian banking system, mostly from 1990 to 2000, comparing with the west-European or American banking, towards we were heading for, in words but thanks to the competitive market economy, this countries were evolving continuously, after World War Two and they’re still advanced now.

**Zamfir is a rabid proponent of the fascistic nationalist-communist ideology of "protochronism" developed during the Ceausescu period. According to "protochronism", Romania is the cradle, the origin of all world civilisation, and Romanian is the language from which all other languages in the world derive (Latin, for example, derives from Romanian, not the other way around!). According to the protochronists, Romanians invented everything from writing to the wheel. Protochronism (and Zamfir) is closely linked to the recently deceased billionaire Romanian emigre businessman Iosif Constantin Dragan, who was deeply involved in the anti-Semitic Iron Guard movement. Dragan's nationalism also led him to collaborate with the Ceausescu regime.

Tom Waits
Brother Can You Spare a Dime?

Consequently, the "battle for the mind" must be a central feature of future NATO actions

PSYOP links
do not think for one second that none of this applies to "us", or that we are exempt or immune to these tactics.

Today, Psychological Operations are a vital part of the broad range of U.S. political, military, economic and ideological activities used by the U.S. government to secure national objectives. The mission of providing Psychological Operations for the U.S. Military today rests with the U.S. Army's Civil Affairs and Psychological Operations Command at Fort Bragg, North Carolina.







57 Ways To Weave Your Cover!

WANT more Babba Zee and the Outraged Spleen of Zion? Try these recent posts: * Sherab Zangpo: Liberator of Kidnapped Peace * WFRL: No Sanctuary!

by Babba Zee
images: Outraged Spleen of Zion
Source: Waiter, There's a Banker in my Soup...