In an example of historical irony, the fear then was that America was now fighting Iraq’s battle against Iran.
warships attacked an Iranian oil production platform in the Persian Gulf in response to a missile that had hit an American tanker off the coast of Kuwait the prior week. Conflict in the Middle East: On that October morning of the market crash, U.S.The United States was said to be losing the future to the Japanese. Trade deficit: The deficit, despite the sharp decline in the dollar, had not been noticeably reduced.Many investors believed that the stagflation of the 1970s was coming back. Inflation: Following 59 months of economic expansion, a steep and prolonged decline in the consumer price index, and persistent dollar weakness, inflation began to rise by the beginning of 1987.Baker believed that “we are engaged in a life-or-death struggle here to preserve the world economy.” A weak dollar: Secretary of Treasury James Baker’s strategy of dollar devaluation was viewed as a gamble and not favorably received by the Germans and Japanese.) By comparison, the notorious Black Tuesday crash of October 24, 1929, that preceded the Great Depression, saw stocks fall by only 13%. The change for that day was calculated on the previous close nearly six months earlier: The stock exchange was shut in July of 1914 as World War I began-and it did not reopen until December 12 that year. (That indignity belongs to December 12, 1914, when the Dow saw a decline of 24%. At the risk of nitpicking, I should add that October 19, 1987, wasn’t the largest down day in percentage terms in U.S. record margin calls and program trades overwhelmed the system. In many ways there hadn’t been a day like it: 595 million shares traded hands (the prior record was 302 million) 95 stocks in the S&P 500 Index weren’t open for trading by 10:00 a.m. I can still remember ABC News “interrupting our regularly scheduled programming to bring you a special report.” The late Peter Jennings announced, “There has never been a day like it.” A few hours later, my old man walked through the door, and I asked, “Dad, do we own any stocks?” The look on his face told me all I needed to know.
#Has the value of linkedin stock plunged full#
(The topic: TV’s New Leading Men: Michael Pare from the series Houston Knights John Stamos from Full House and Jack Scalia from Remington Steele. I was a sixth-grade latchkey kid at the time, with an older sister who spent that particular afternoon watching ABC’s lineup of General Hospital and The Oprah Winfrey Show. The New York stock market crash of 1987 happened 30 years ago today when, on October 19, the Dow Jones Industrial Average (DJIA or the Dow) plunged by a then-record 508 points-a 22% decline in the index.
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