https://padlet.com/rros4967/pp1xokhglytm 1929 vs 1987 Crashes en-us 2018-04-23 16:20:26 UTC 2025-06-30 09:38:22 UTC hello@padlet.com rgre9207 https://padlet.com/rros4967/pp1xokhglytm/wish/254485111 The events in the 1929 crash and the 1987 are incredibly similar. In both time periods, the crash occurred during seemingly economically prosperous times. Unfortunately, bot had to h deal with dramatically increasing stock prices that then started to plummet. However in 1827, there was a brief period of steadying, this period lasting five weeks where the stock only fell 8 percent. Though it could not prevent the eventual drops. Both crashes experienced days of panic selling where unforeseen amounts of stocks were sold. The technology in both times could not keep up with the volume of trading demands and further contributed to the issue. Banks in both times offered to buy stocks above the going prices to prevent further panic to no avail. ]]> 2018-04-23 16:24:54 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254485111 rgre9207 https://padlet.com/rros4967/pp1xokhglytm/wish/254485558 The results of the crashes of 1929 and 1987 were vastly different. The one important similarity is that both crashes affected the markets of other countries. The crash of 1929 head to crashes in London, Tokyo, Paris and Berlin and the crash of 1987 affected the global market. However the devastation that followed was much worse in 1929. The crash of 1929 lead to mass bank failures, decreases in consumerism and investment, and the economy did not reach the peak 1929 levels for another 25 years. In contrast, the crash 1987 resulted in much less economic strife. It only took 2 years of the economy to return to peak 1987 levels and the was only a low lost of money for those invested in stocks. This difference is very critical when comparing the crashes because the following years after the crash were dramatically different. In 1929, there was many legislations to correct the mistakes that lead to the crash such as the the Glass-Steagall Act of 1933 and the Securities Exchange Act of 1934. However the Great Depression was still in effect. In 1987, the was also new regulations enacted as a result of the crash such as the creation of Circuit breakers that automatically halted large trading exchanges if stock prices fall lower than a certain amount. 

]]> 2018-04-23 16:25:41 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254485558 rgre9207 https://padlet.com/rros4967/pp1xokhglytm/wish/254486065 The difference between the Federal government's role in the crash of 1929 and 1987 were night and day. In 1929, the federal government's tightening and decrease of the money supply contributed to the crash. Their lack of action to increase the money supply after the crash caused the furthering decrease in stock prices and collapse of the banking system. In contrast, the Federal government of 1987 was very hands on. They provided the money needed to prevent a banking crisis. They cut key interest rates and provided the money to increase the money in bank reserves. Their actions allowed banks to give loans and support those who lost large amounts in the crash. Unlike the crash of 1929, this allowed the stock prices to recover and people could repay their loans. The federal government's inaction in 1927 contributed to the worsening of the crisis and the future Great Depression. ]]> 2018-04-23 16:26:38 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254486065 rros4967 https://padlet.com/rros4967/pp1xokhglytm/wish/254489692 The economic crashes of 1929 and 1987 held both similarities and differences as to the causation of the event. The crash of 1929 was focused more primarily on the large amount of people selling their stocks due to the fact that the stock prices were steadily decreasing and didn’t want them to decrease any further. Even before the crash their was obvious signs that pointed towards recession, signs such as, when the numbers of production rates, prices, and individual income decreased. Many of the other people that held stocks started to build a feeling of paranoia as they saw  folks sell their stocks so they followed the same actions as their fellow peers and sold their stocks as well which in turn lead to prices falling. In contrast, the crash of 1987 held a different causation. The major difference involved the way that large investment companies ordered large stock trades. Large investment companies were starting to use computers to order these stock trades automatically but when prices fell, trade orders became the base of the system, causing panic. 

]]> 2018-04-23 16:33:40 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254489692 rgre9207 https://padlet.com/rros4967/pp1xokhglytm/wish/254490010 In conclusion, both crashes were similar in the events that occurred, from the panic selling to the massive amounts of money lost. However, the reactions of the federal government are what make the two crashes starkly different. While the 1929 crash is one of the contributing factor of the Great Depression that occurred shortly after, the crash of 1987 was quickly recovered and did not cause that level of economic devastation.]]> 2018-04-23 16:34:19 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254490010 qarn1143 https://padlet.com/rros4967/pp1xokhglytm/wish/254490827 2018-04-23 16:35:56 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254490827 rros4967 https://padlet.com/rros4967/pp1xokhglytm/wish/254492188 2018-04-23 16:37:55 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254492188 qarn1143 https://padlet.com/rros4967/pp1xokhglytm/wish/254492680 2018-04-23 16:38:47 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254492680 rros4967 https://padlet.com/rros4967/pp1xokhglytm/wish/254493732 2018-04-23 16:40:41 UTC https://padlet.com/rros4967/pp1xokhglytm/wish/254493732