Stock Markets Exposed
Summary on Stock Market Crash.?
I need a summary on the stock market crash, something along the lines of two paragraphs. Greatly appreciated. :)
Public Comments
- what "crash"?
- The crash of 1929 was caused by rampant fraud and speculation among corporations and traders. Speculators bought on margin and could not meet their margin calls. The crash of 1987 was caused by an overextended bull market, rising interest rates and the backfiring of program trading and portfolio insurance, two futures related hedging strategies that excerbated the downdraft in stock prices. The bear market of 2007 was caused by the mortgage credit crisis which was basically a re-pricing of credit that spilled over to effect liquidity in the debt markets.
