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Originally Posted by amber
Just like in the 20's before the Crash.
Good god, economic history is so simple, yet, few of our presidents care about it or understand it, apparently.  |
Markets have crashed many times and for generally different reasons - though the comp. age greatly increased the flow of info. So, its not that simple?
http://mars.acnet.wnec.edu/~grempel/...epression.html
http://www.lowrisk.com/crash/
http://stocks.about.com/od/whatmoves...rash102904.htm
Essentially, the margain (investing by borrowing money) was the cause of the 29 crash.
The most recent crash was less severe than the 29 crash and was spawned by the inflated stock prices of the IPO's and the loss of consumer confidence in fraudulent activities resulting in the bankruptcy of several of the largest corp.'s in the US.