https://padlet.com/lmar2874/8pi3lqo6g047 1929 vs 1987 Crashes en-us 2018-04-23 16:35:54 UTC 2018-04-23 16:55:36 UTC hello@padlet.com ralc2704 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498256 There were many similarities between the Stock Market Crash of 1929 and the Stock Market Crash of 1987. The Crash of 1929 was seen as the end of prosperity of the 1920s. Prices of stocks were increasing dramatically during 1928. Stocks fell by 10% but then continued to rise by 8%. People began to panic and frantically sell/ trade. In fact 13 million shares were traded on October 24 which broke a record. Although many people including President Hoover were attempting to settle the panic, stocks continued to spiral downward. Like the crash of 1929, the stock market crash of 1987 caused a panic. The stock market crashed on October 19th, 1987 (black monday). GDP was increasing at an annual rate of 3.4%. Stock market prices drastically rose until August 25 when they fell by 8% and the rose by 6%. That is when the socks dropped by 22.6% on black monday.  This wasn't as impactful as 1929 because it was less of a percentage drop. Both crashes consisted of multiple drops and rises, but the crash of 1929 had more of an impact. Although the crash of 1987 dropped stock prices by 22.6 percent, there was help from the federal government to control it. The crash of 1929 on the other hand did not have this support so it eventually lead to the Great Depression.]]> 2018-04-23 16:48:51 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498256 skam2831 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498354 The crashes of 1929 and 1987 had impacted banks and people after the fact in different ways. After the crash in 1929, things escalated quickly, people losing money left and right, the banks could not loan out money because the people who had loaned money from the bank, could not repay them. 75% of of the people lost around $45 billion. Because of the large loss of money, workers could not be paid, making the unemployment right skyrocket during this time. The Securities Exchange Act of 1934 had conducted the Securities and Exchange Commision to protect the people of securities and financial markets wrongdoing. In 1987, the effects were not as atrocious. This crash had only lasted one day, but it was the largest one day crash. After the crash occurred, circuit breakers were installed. Id stock prices were to continue to fall, the breakers would stop trading on important trades. 

]]> 2018-04-23 16:49:00 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498354 eede6652 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498462 The causes of these crashes had similarities and differences. Economists generally disagree on the main cause of the crashes but they agree that multiple things factored into the crashes. On big similarity in both of the crashes was psychological reasons. Fear and panic both play into the crash majorly. Another similarity was that stocks were overvalued. In 1929 and 1987, people were looking for a way to get rich quick and the stock market was seen as the best way to do that. Stock prices were way too high compared to the earnings and dividends of companies and the prices were bound to fall eventually. Differences in the causes of the crashes were how technology factored into the crashes. In 1987, computer programs are a big reason why so much panic ensued during the crash. There were programs that would sell stocks once they fell below a certain value. This fed into the fear and panic that caused people to sell stocks. There was no technology like this in 1929 as there were no computers. However, telephones were a factor for fear during the crash. Telephones were not advanced enough to for the amount of calls that people were making and it was estimated that the ticker tape ran an hour and a half late meaning many sellers didn’t learnt the price they received for their trades until later that night. Telephones in 1929 did factor into the fear that occurred during the crash but it didn't play as big of a roll as computers did in 1987. 

]]> 2018-04-23 16:49:11 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498462 ralc2704 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498668

approximately 16.5 million shares were traded]]> 2018-04-23 16:49:29 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498668 lmar2874 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498683 The Feds played a very negative role in the crash of 1929 many people blaming the crash on federal reserve policies, but in 1987 many people believed that federal reserve policies helped in the prevention of a recession. In 29 the feds did not help banks who needed money because people did not pay of debts so people could not take money out of the bank. In 87 the federal reserve assured the public and the banks that they would provide money to the banks to prevent a crisis. This allowed the banks to continue to give loans to people who were in debt because of the stock market crash. 


]]> 2018-04-23 16:49:32 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254498683 ralc2704 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254499924

13 million shares were traded]]> 2018-04-23 16:51:50 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254499924 skam2831 https://padlet.com/lmar2874/8pi3lqo6g047/wish/254501375

People getting upset over the crash ]]> 2018-04-23 16:54:19 UTC https://padlet.com/lmar2874/8pi3lqo6g047/wish/254501375