https://padlet.com/mfor9799/om7emvui6wj2 1929 vs 1987 crashes en-us 2018-04-23 16:19:55 UTC 2025-12-24 16:38:51 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Xmastree.png mhor2817 https://padlet.com/mfor9799/om7emvui6wj2/wish/254487460 October 24, 1929 now known as "Black Thursday" was the beginning of a huge drop in stock prices caused by a mixture of Margin buying, mass selling of a record 13 million shares due to panic, and poor federal economic policy. After a short week of the economy stabilizing there was the final crash on October 29,1929 known as "Black Tuesday" with a record 16.5 million shares traded and stocks being half of their value from the month before. The crash caused huge economic instability nationally and across the globe, ending the prosperity of the 1920's and setting up the circumstances that lead to the Great Depression.]]> 2018-04-23 16:29:19 UTC https://padlet.com/mfor9799/om7emvui6wj2/wish/254487460 mfor9799 https://padlet.com/mfor9799/om7emvui6wj2/wish/254489197    The difference between what happened after the crash 1929 and 1987 was significant.  After the crash of 1929 the situation only continued to get worse with time, with stocks continuously spiraling downward until 1932.  A culture of prosperity and optimism quickly turned to skepticism and lost faith.  People, businesses, and banks all had less money to play with, which initiated a domino effect of people losing money, businesses failing, increasing unemployment, declining production, falling prices, less investment spending, banks failing, and etc..  This crash also led to the crashing of other countries markets and economies as well.  A plethora of programs and legislation were created in the aftermath to prevent and curb the effects of another crash, like the Glass-Steagall Act and the Securities and Exchange Commision (SEC).  The crash of 1987 did not affect the economy seriously, and its predicted effects were overstated.  However, all major markets did decline that october, but it would be considered a “market interruption” as opposed to something serious like a recession or depression.  After the crash, excluding 1990-1991, the U.S would enter a 10 year expansion period.  There would also be reforms implemented to prevent and protect against another crash, and stock exchanges and brokerage firms would upgrade their technology and up communication in lieu of another crash.

]]> 2018-04-23 16:32:41 UTC https://padlet.com/mfor9799/om7emvui6wj2/wish/254489197 zdon0259 https://padlet.com/mfor9799/om7emvui6wj2/wish/254489820 Both economic crashes of 1929 and 1987 were caused in many similar ways but had their differences.  The crash of 1929 was heavily caused by large amounts of people selling their stocks after realizing that stock prices were falling and didn't want them to fall any further.  Previous to the decrease in demand for stocks and falling prices there were already signs of a recession including decreasing numbers in production rates, prices, and individual income.  People were seeing other people starting to sell their stocks which caused a feeling of paranoia within stockholders causing them to sell their stocks before anything got worse.  This entire panic lead to prices falling. There were many different causes that led to the stock market crash of 1987.  One large difference between the causes of the two different strikes was the way large investment companies ordered large stock trades.  Large investment companies began programming computers to order these large stock trades automatically but as prices fell trade orders began backing up the system causing nothing but panic. 

]]> 2018-04-23 16:33:55 UTC https://padlet.com/mfor9799/om7emvui6wj2/wish/254489820 svon8749 https://padlet.com/mfor9799/om7emvui6wj2/wish/254490817 The economic crashes of 1929 shared both similarities and differences in what exactly happened. One similarity was the rapid increase and decrease in stocks. Both in 1929 and 1987, the stocks increased, and decreased at a very large rate. One difference being that in 1987, the stocks went down once again, to a record low, almost twice as low as in 1929, when in 1929 the stock leveled out. momentarily. In 29’, panic selling was a major contributor of the crash, with a record 13 million shares traded on October 24th. The technology involved in what happened both crashes varied, with telegrams and phone calls being the source of trading in 1929, and phones and computers in 1987. In 1929, bankers agreed to buy stocks at higher prices to give people confidence in the market, and counteract the crash. The president, Herbert Hoover, tried to raise the people's confidence as well.  The downward spiral continued in 1929 until the market prices were at half of what they had been at on Oct. 24th, known as Black Thursday. In 1987, panic selling contributed to the crash as well. Some selling was done by automated computers, a change from 1929. This crash, although not nearly as devastating as the crash in 1929, was the worst economic crisis since. 

]]> 2018-04-23 16:35:54 UTC https://padlet.com/mfor9799/om7emvui6wj2/wish/254490817 mfor9799 https://padlet.com/mfor9799/om7emvui6wj2/wish/254491202 The crashes in both 1987 and 1929 were significant and sudden economic downfalls. In 1929, the crash led to a full blown economic depression, the worst in US history, and lasted until the mid 1930's. Compared to the 1987 crash, which was much less devastating. In the crash on 1987, some media outlets didn't acknowledge it as a crash, but as an economic interruption. In 1987, the stocks dropped by the most amount in one single day- 22.6%. In 1929, the crash resulted in another record- 13 million shares traded, in a phenomenon called panic selling. Both were shared the common cause of overvalued stocks, and federal reserve policies. In both crashes, the Federal government tried to be the reassuring factor, and keep things from getting worse. In 1987, the Feds implemented tactics to prevent banks from failing, as they did in 1929. Legislation was passed after the crash of 1929, with the implementation of the SEC (Securities and Exchange Commission), and The Glass-Steagall act, prohibiting banks who are federally backed by affiliating with stock broker firms. In 1987, due to the much less devastating effects, there wasn't any legislation passed. Overall, both of the crashes were economic downfalls, but the crash of 1929, compared to 1987, was far worse. ]]> 2018-04-23 16:36:41 UTC https://padlet.com/mfor9799/om7emvui6wj2/wish/254491202 mhor2817 https://padlet.com/mfor9799/om7emvui6wj2/wish/254493720 During a decade of relative economic prosperity, the stock market crash of October 19, 1987 AKA "Black Monday" was unexpected. After the fluctuating stock prices of the months prior, there was a huge drop of 22.6 percent in stock values caused by a panic selling of stocks and the automated purchase of stocks by computers. Though the Crash of 1987 was crippling initially the federal government responded quickly with funding for banks and lowering of interest rates, effectively neutralizing the crash and the economy recovered soon after.

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