| Stock Market Crash 2008 | Page 1 Page 2 | | | 'More Insidious' Than 1987: Current Bear Market Ranks Among Worst in History’
Posted Oct 10, 2008 02:40pm EDT by Aaron Task in Investing, Recession
If 1987 was like being in a bad accident, this market is like running into a bully who beats you up and takes your lunch every day, day after day. In that regard, the current market upheaval is "more insidious" than the 1987 crash, says John Roque, technical analyst at Natixis Bleichroeder.
Whether 1987 or 1929, the now year-long slump already ranks among the worst in U.S. market history. Both the Dow and S&P are now down more than 40% from their 2007 peaks, the worst bear market since 1973-'74, when the Dow fell 45% in two years.
Given the historical nature of the current decline, it's useful (and wise) to recall how the market fared in prior periods of prolonged distress, as Roque recently did in a report entitled "Don't Know Much About History."
* From 1909 to 1919, the Dow was essentially flat for 13 years.
* After peaking in 1929, the Dow didn't make a new all-time high until 1957, nearly 30 years later.
* From 1965 to 1982, the Dow was essentially flat for 16 years. | Panic Selling Ripples Across Global Markets as Fear Cascades- AP
European stock markets slumped in early trading Friday following massive sell-offs on Wall Street and Asia as lending rates between banks continue to rise despite this week's efforts by central banks to break the logjam in credit markets. At mid-morning London time, the FTSE 100 index of leading British shares was down 233.84, or 5.4 percent, at 4,079.96, having fallen below the 4,000 mark earlier for the first time in five years. Germany's DAX was 383.70, or 7.9 percent, at 4,503.30, and France's CAC-40 was 209.67, or 6.1 percent lower at 3,233.03. In Japan, the benchmark Nikkei 225 index in Japan 881.06 points, or 9.6 percent, to 8,276.43, its lowest closing level since May 2003.... » read more | Global Stocks, U.S. Futures Slump as Rio, E.ON Fall; Yen Gains
By Sarah Thompson
Oct. 10 (Bloomberg) -- Stocks tumbled, driving the MSCI World Index to its worst week in more than three decades, on concern the deepening credit crisis will send the global economy into recession. The yen rallied as investors shunned higher- yielding assets.
Rio Tinto Group, E.ON AG and Barclays Plc fell more than 11 percent in Europe. Japan's Nikkei 225 Stock Average slumped 11 percent, the second-biggest drop on record. The yen rose to 99.39 per dollar, up 6 percent this week, the most in a decade. Oil tumbled more than $4 a barrel on concern the economic slowdown will stifle demand. | Crisis in Credit (Reuters)
From Wall St to Your Street
Freefalling stocks pile pressure on G7 policymakers 7:31am EDT
LONDON (Reuters) - The world's economic powers faced huge pressure on Friday to devise drastic remedies to revive the banking system and end panic selling in financial markets. Full Article | Video | | | | The Crisis - A Timeline
A shocking series of events that forever changed the financial markets.
Sunday, Sept. 14 - Trouble brews
News that Lehman Brothers was on the brink of collapse and scrambling for a buyer first surfaced on Friday. But by Sunday, there were still no suitors for the 158-year old investment bank, and bankruptcy seemed inevitable. Indeed, just after midnight, in Monday's early hours, the firm officially announced its intention to file for Chapter 11.
Equally as staggering, just hours after reports surfaced that Bank of America broke off of talks to buy Lehman, BofA unleashed the news that it would pay $50 billion to scoop up Merrill Lynch, another iconic Wall Street name. | | | | | | | | | | | | |
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