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The Biggest Market Sell-Offs in History

Pivotfarm's picture





 

 

Originally posted http://www.tothetick.com/the-biggest-market-sell-offs-in-history

As stock markets are poised to open or close around the world and we see exactly what damage has been done to the major indexes due to the Chinese fake-data scandals that have come to light coupled with the Federal Reserve’s monetary policy meeting, we are waiting with baited breath: Buy! Buy! Buy! Or: Sell! Sell! Sell! Whichever way we turn, someone is bound to make money somewhere in the world out of all of this. Isn’t that why we are in this business?

The Nikkei dropped by 7.3% at the end of the day and Hong Kong’s Hang Seng dipped by 2.5%. Shanghai maintained a moderate fall at just 1.2% (if you believe that data now!). The Asian markets are down. How will the Europeans fare? They are already declining this morning. The CAC 40 is down already 2.32%. The FTSE 100 is down 1.94% so far this morning. The DAX is posting a 2.64%-decrease.

Plus, when the Bureau of Labor Statistics in the US will announce its unemployment figures this morning and tell us what the damage is. The Federal Reserve didn’t manage to allay fears as Ben Bernanke publicly stated that he wouldn’t be pulling the plugs on the stimulus program, but which was later contradicted by the minutes telling the full story that if the recovery shows through, then we will be pulling money out by June. That’s too soon for some. Are we in for another rocky ride?  Maybe. You can never tell, really.  But, if we look back in history, then we can see the worst stock market crashes that have taken place and why.

Here’s the ranking. Chronological order!

1. Black Tuesday October 29th 1929

The Dow Jones industrial average plummeted by 11% and 16 million shares were traded on one day. That was a record in itself. It took until 1954 for the average to get back to the pre-crash figure. There was a knock-on effect even back then and Canada lost 50% of its value in shares.

2. Black Monday October 19th 1987

Bad news issued on October 14th in the US triggered the stock crash in 1987. The Dow lost 100 points on October 16th and then a further 500 on the 19th. By the time October came to a close, there was a drop in the US of 22.68%. The UK fared even worse with a drop of 26.45%. Hong Kong did worst of all with a loss of 45.5%

3. Mini Crash October 27 1997

This time it was in Asia and international-currency speculation trouble. The Dow declined and triggered a drop in Argentina, Mexico and Brazil (13-15%). European suffered from the knock-on effect and plunged too.

4. September11th 2001

No need to say why and what happened on this fateful day. People bought into traditional safe buys like gold and bonds and fled everything else as global markets took a battering. Oil prices shot through the roof. Tokyo dropped to a 17-year all-time low. European indexes dropped to pre-1998 levels, with the FTSE 100 losing 5.7% with a loss of $98 billion.

5. China February 27th 2007

The Dow Jones lost 416 points in one day and fell 3.3%. Chinese stocks fell like a tonne of bricks and US manufacturing statistics aided and abetted that even more.  The FTSE fell 1.85%. Chinese stock lost $140 billion in value.

6. September 29th 2008

The House of Representatives’ failure to bail-out the toxic-mortgage assets of banks ($700 billion) sent markets into turmoil. The Dow lost 429 points (in just 5 minutes flat!).

7. Flash Crash May 6th 2010

The Dow Jones plummeted by 1, 000 points in half an hour. The Nasdaq had to cancel all trade that day s the drop was too big to deal with.

Looking back, it seems like most crashes have taken place in September or October. But, the worst day of the year is officially called ‘Blue Monday’. It is calculated every year and the next one is on January 20th 2014…so maybe! It was calculated by Dr. Cliff Arnall at Cardiff University, based upon weather conditions, lack of sunshine, debt level (after Christmas) and time elapsed because of failed New Year resolutions, amongst other things.

We can see that since 1929, there have been far worse stock market crashes and down-days in history. Some of them are closer than we would like for our own comfort. The world has become a smaller place and we are all living in each other’s pockets. The unemployment figures get published at 8.30 am ET. Then, they will be closely followed by the new home sales. Let’s see what that does to the markets. But, given the present world situation, I doubt if we can hold out for some good news. Just prove me wrong…for once!

 

 


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Fri, 05/24/2013 - 04:44 | Link to Comment celticgold
celticgold's picture

you didnt make those crashes ......

Fri, 05/24/2013 - 04:44 | Link to Comment celticgold
celticgold's picture

double penetration

Thu, 05/23/2013 - 23:43 | Link to Comment Dapper Dan
Dapper Dan's picture

http://finviz.com/futures_charts.ashx?t=NKD&p=d1

 the Nikkei  7.3%  crash,  in a longer time line.

Thu, 05/23/2013 - 21:54 | Link to Comment MaxThrust
MaxThrust's picture

The future is unwritten!

Then again, I have been adding to my stack so

may be on don't believe that statement.

Thu, 05/23/2013 - 19:38 | Link to Comment WTFUD
WTFUD's picture

Amerika Rogue State.
When will the Communities take back control or will you spiral into chaos and unaccountability?

Thu, 05/23/2013 - 18:15 | Link to Comment stormsailor
stormsailor's picture

is that in our time, or in god's time?

Thu, 05/23/2013 - 18:25 | Link to Comment NotApplicable
NotApplicable's picture

It is relative, after all.

Thu, 05/23/2013 - 18:01 | Link to Comment GoldForCash
GoldForCash's picture

Hey the Bible says the financial devastation will only take one hour.

Thu, 05/23/2013 - 22:42 | Link to Comment Deo vindice
Deo vindice's picture

You really need to study prophetic scripture in context.

Thu, 05/23/2013 - 18:13 | Link to Comment Jugdish
Jugdish's picture

That sir will be the greatest hour of our lives. Like when a thunderstorm knocks out power - the feeling of relief is overwhelming like climaxing in a beautiful woman.

Thu, 05/23/2013 - 17:45 | Link to Comment CustomersMan
CustomersMan's picture

 

Just recently we heard of a man killed by police in Florida that was connected to the two suspects in the Boston Marathon Bombing. He supposedly lunged at them with a knife, after confessing to three murders in Waltham Ma. Yea, that makes sense, and dead men tell NO tales.

Now this today:

From Blacklisted News:

"2 FBI Agents Involved in Dzhokhar Tsarnaev's Arrest Have Been Killed During a Training Exercise

May 23, 2013

Print Version

Source: Economic Policy Journal

Accrording to a statement from the FBI, two FBI special agents were killed last Friday during a training exercise off the coast of Virginia Beach, Virginia. Special Agent Christopher Lorek and Special Agent Stephen Shaw were members of the FBI’s elite Hostage Rescue Team, part of the Critical Incident Response Group based at Quantico, Virginia. The cause of the incident is under review, the FBI said."

 

Thu, 05/23/2013 - 21:39 | Link to Comment are we there yet
are we there yet's picture

I wish Tom Clancy was a member of ZH right now with the strange FBI and other untimely strange deaths, and improbable events, stories, and statements coming out of D.C.. 

Thu, 05/23/2013 - 19:46 | Link to Comment are we there yet
are we there yet's picture

double post

Thu, 05/23/2013 - 17:57 | Link to Comment Bastiat
Bastiat's picture

 

"2 FBI Agents Involved in Dzhokhar Tsarnaev's Arrest Have Been Killed During a Training Exercise"

. . . but the third one now remembers everything *exactly* as it happened.

Fri, 05/24/2013 - 05:00 | Link to Comment BeetleBailey
BeetleBailey's picture

allllllllllllllllllllllllllllllllllllll under the realm.....of "National Security"...what a fuckin umbrella that phrase is....

Thu, 05/23/2013 - 18:40 | Link to Comment drdolittle
drdolittle's picture

fuck me, good thing I'm not with the FBI. I'll be safe cause I'm a lover not a fighter.

P.S. Can't those FBI fucks shoot anyone in the leg?

Thu, 05/23/2013 - 18:24 | Link to Comment lakecity55
lakecity55's picture

Wow. This is just like NAZI Germany!!!

I can't wait to see what happens next!!

Attack on the Polish frontier?

We don't need to watch any WW2 movies anymore. Just open your front door!

Achtung!

Sieg Heil!

Sieg Heil!

Sieg Heil!

Fri, 05/24/2013 - 09:03 | Link to Comment Agstacker
Agstacker's picture

Not Poland, Canada.  They have oil sands up there.

Thu, 05/23/2013 - 18:21 | Link to Comment NotApplicable
NotApplicable's picture

"Seal Team Six(ed)" is now officially a verb.

Thu, 05/23/2013 - 17:41 | Link to Comment Jugdish
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Long Sisa.

Thu, 05/23/2013 - 17:40 | Link to Comment Haus-Targaryen
Haus-Targaryen's picture

Yawn.  

 

Who are we kidding, Bernanke is going to keep this printing train going for a decade. 

Thu, 05/23/2013 - 16:19 | Link to Comment StarTedStackin'
StarTedStackin''s picture

The Obama "Blame it on the Republicans Crash" will be larger and swifter than any we have ever seen. The question is, will it be used to take the House, or to justify a third term?

Thu, 05/23/2013 - 19:08 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

The question is, will it be used to take the House, or to justify a third term?

Third term? Time to wake up, Rip van Winkle, we're well into the fourth term.

Thu, 05/23/2013 - 20:40 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

More likely the 25th term...

Thu, 05/23/2013 - 18:19 | Link to Comment NotApplicable
NotApplicable's picture

Who the fuck cares about the clown show?

As if any one Bozo is better than any other.

Free yourself before it's too late!

Thu, 05/23/2013 - 17:59 | Link to Comment GoldForCash
GoldForCash's picture

Third then the fourth. Unless we get a Patriot.

Thu, 05/23/2013 - 16:29 | Link to Comment LawsofPhysics
LawsofPhysics's picture

With more than 52% of the population not holding any stocks or really giving a flying fuck what the markets do, I don't think you really understand how the nanny (free shit army) state works.  

Thu, 05/23/2013 - 16:37 | Link to Comment StarTedStackin'
StarTedStackin''s picture

That's downright stupid, we all know how the ticks and leeches will vote, it's the middle America stupes the Obowel Movement knows will swing elections.

 

 

You seem unable to grasp the reality that is right before your eyes.

Thu, 05/23/2013 - 19:05 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

You seem unable to grasp the reality that is right before your eyes.

...said the guy that still believes that elections matter.

Thu, 05/23/2013 - 16:58 | Link to Comment LawsofPhysics
LawsofPhysics's picture

You ignorant fuck.  That's exactly what I said.  We have long since past the point of no return.  Your vote doesn't mean shit.

Thu, 05/23/2013 - 18:24 | Link to Comment NotApplicable
NotApplicable's picture

Actually, it means one doesn't know shit, as any truly "informed voter" would NOT continue to support the beast.

Thu, 05/23/2013 - 16:14 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

All my paper monies are worthless ! 

Oh.

Right.

I have no paper monies.

All your paper monies are worthless !

HA HA HA HO HO HO HEE HEE HEE - GO FUCK YOURSELVES, BANKSTER BITCHEZ. 

Fri, 05/24/2013 - 01:22 | Link to Comment JamesBond
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all your paper are belong to us

Fri, 05/24/2013 - 09:08 | Link to Comment MajorWoody
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All but 2 under the elephants regimes.

Do NOT follow this link or you will be banned from the site!