The recent stock market turmoil has aroused people's memories of 1987, 10, 19. Shareholders can't help worrying that the 20th anniversary of the stock market crash will come and that history will not repeat itself.
Recently, alan greenspan, former chairman of the Federal Reserve, said that the situation in the world financial market is very similar to the 1987 stock market crash. In the market, panic prevailed. Market instability has seriously damaged Ben Bernanke, the current chairman of the Federal Reserve. In order to avoid all kinds of risks brought by subprime mortgage, he cut interest rates sharply to save the market. The crisis frenzy not only made the United States taste the difficulty of saving the market, but also rushed out of the country and spread all over the world. Governments all over the world have taken measures to solve this problem. Europe and the United States have eased the credit shortage by injecting nearly 10 trillion US dollars.
Although these measures have temporarily stabilized the confidence of the market, the global stock market has been turbulent again recently, and the tiger of inflation is ready to move, which makes the market inevitably worry about the "20-year cycle" of the stock market crash.
Bi Si, global strategist of Morgan Stanley, said that the current market situation in the United States is similar to the stock market crash of 1987. At that time, the market was worried that the loan would exceed the limit, and now there is a sub-prime loan problem. Now, hedge funds have established procedures to strengthen selling when the market falls, which is the same as the popular 1987 portfolio insurance.
Although the market has gradually become dull recently, and the Dow is still hovering at the historical high of 14000, some analysts have pointed out that globalization has made the financial market risk spread wider and the market more global. According to statistics, risks spread faster in the world than 20 years ago, and risks no longer exist only in specific markets.
Let's look back on that dark day 20 years ago. ...
On Monday, 1987, 10, 19, the new york stock market crashed, which was the biggest crash in history. The Dow Jones index plunged 508.32 points, or 22.6%, in just one day, the highest drop in a single day since 194 1. Within 6.5 hours, the new york stock index lost 500 billion US dollars, equivalent to 1/8 of the annual gross national product of the United States.
The stock market crash shocked the whole financial circle and quickly produced a "domino effect" in the global stock market. Stock markets in London, Frankfurt, Tokyo, Sydney, Hong Kong, Singapore, etc. were all strongly impacted, and the stock fell by more than 10%. The collapse of the stock market caused great panic among investors all over the world. Many millionaires became poor overnight, and thousands of people broke down and committed suicide by jumping off buildings.
The New York Times reported that "everything is out of control". Many millionaires become poor overnight, especially those investors who invest in stocks with their hard-earned money accumulated over the years. Affected by the stock price crash, investors' psychology has become extremely fragile. Many people who were crushed by debt because of the stock market crash completely collapsed, and the news of suicide was endless. Banks closed down, factories closed down, and enterprises laid off a large number of employees, which made people panic.
Some analysts pointed out that the US stock market crash of 1987 had no obvious impact on the US economy, and its damage was limited to the stock market, with a faster recovery. However, the recent turmoil, although not serious, has expanded its influence, resulting in a series of events such as the biggest decline in the property market 10, serious differentiation in the credit market, slowing economic growth, and volatility in the stock market.