Stock Markets Exposed
What specific factors caused the US stock market to crash?
I know a few things that causes a stock market to crash (thanks to those who answered my previous question :D). Now all I need to know is what exactly made it crash so that I can apply it to my design accurately. Thanks for the help guys : )
Public Comments
- Fear, mainly. At the time no one knew which banks to trust - which would fail (lehman brothers) and which would survive. No one knew which banks were caught up in CDS, CODS, etc so people withdrew their money in mass. This triggered a fall in share price, which then triggered margin calls - the margin calls took even more liquidity out of the market and the cycle continued.
