Report: Markets 'Are Like 1987 Crash'

Discussion in 'Trading' started by capmac, May 21, 2006.

  1. S&P
     
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    #61     May 22, 2006
  2. For the Qs, look at 8/7/1990.

    For the DJ30, look at 5/10/1989.
     
    #62     May 22, 2006
  3. Q12

    Q12

    smitty,

    are those the only 2 examples you were able to find? I took a look at the bloodbath throughout 2000 and it looks like the most consecutive down days for the ndq was 7...

    thx.
     
    #63     May 22, 2006
  4. The people that say interest rates are nowhere near where they were in 87 are only getting 1/2 of the picture correct.

    Housing prices were nowhere near as overvalued in 87 as they are now.

    would you rather pay 8% on 200k or 6% on 700k? cuz thats where the housing prices have gone to.

    also, what was oil in 87? nowhere near $70 for this extended period of time.


    This housing bubble burst will make the nasdaq bubble seem like a walk in the park.

    When housing goes, it takes so many jobs with it.
     
    #64     May 22, 2006
  5. Yup, that's it. My data only goes to the mid eighties though.
     
    #65     May 22, 2006
  6. Q12

    Q12

    thanks-

    In both instances we saw a 30% drawdown for the nasdaq.... i suppose somehow though, it's still not really a bid deal!
     
    #66     May 22, 2006

  7. I think this is a great point. The speculation in housing being being directly linked to industry means a burst in the bubble will produce a big cascade.
     
    #67     May 23, 2006
  8. I was born in 1987, I didn't know there was a big market crash.

    How did it compare to the internet bubble bursting?
     
    #68     May 23, 2006
  9. it was terrible for me and my family...altough we were not in da mkt, everythin' suffered as a consequence and we had to liquidate our alfa romeo biz at a huge loss and sell many of our proprieties...we recoverd nicely since then but still a nightmare we went torugh and very close to lose our shirts...many of me friends highly leveraged in da mkt went completely b/k in no time..one of 'em hanged himself..very sad.
     
    #69     May 23, 2006
  10. ... that is very sad.... :(

    Do you think that if the same situation happened in the market today, it would be even worse than in 1987 or would people be better prepared for it?
     
    #70     May 23, 2006