The Stock Market Crash Of 2008
The Stock Market Crash of 2008
William VanGeldren
Dr. Liu
18 November 2013
Slis 202
The Stock Market Crash of 2008
Our Country is dependent on a successful economy. The success of our economy has many underlying factors. One of the main factors is the Stock market. The stock market remains a stringent factor in our economic well-being and if it fails crisis occurs. A crash occurs when shares of stock reach 20 percent or higher which has only occurred three times and the most recent was 2008. In 2008, the United States stock exchange crashed causing not only a national economic crisis, but would cause a world-wide financial crisis. There are several factors that caused this crash but the main reason was the subprime mortgage crisis. The stock exchange is a simple system to comprehend and was established centuries ago. The history of the stock exchange dates back to 1790 in Philadelphia, Pennsylvania. This would be the first time trading stocks was done in an organized fashion instead of at random like it was done prior. This location deemed successful for 30 years before it was moved to its permanent location on Wall Street in New York City. The stock market remained successful until it crashed on Black Tuesday in 1929. This crash resulted in the loss of billions of dollars and marked the beginning of the great depression. The great depression would last for about ten years and put America’s economy in the worst shape it has even been . During this period, Stocks would drop to record lows, half of the American banks would perish, and the unemployment rates would sky rocket. The Depression would finally recede after World War II.
The next crash would not occur for decades but would affect the largest markets on the globe and would be referred to as black Monday. Black Monday, occurred on October 19, 1987. On this day stocks would drop 22% and this drop would send the global economy into a tailspin. 19 of the
William VanGeldren
Dr. Liu
18 November 2013
Slis 202
The Stock Market Crash of 2008
Our Country is dependent on a successful economy. The success of our economy has many underlying factors. One of the main factors is the Stock market. The stock market remains a stringent factor in our economic well-being and if it fails crisis occurs. A crash occurs when shares of stock reach 20 percent or higher which has only occurred three times and the most recent was 2008. In 2008, the United States stock exchange crashed causing not only a national economic crisis, but would cause a world-wide financial crisis. There are several factors that caused this crash but the main reason was the subprime mortgage crisis. The stock exchange is a simple system to comprehend and was established centuries ago. The history of the stock exchange dates back to 1790 in Philadelphia, Pennsylvania. This would be the first time trading stocks was done in an organized fashion instead of at random like it was done prior. This location deemed successful for 30 years before it was moved to its permanent location on Wall Street in New York City. The stock market remained successful until it crashed on Black Tuesday in 1929. This crash resulted in the loss of billions of dollars and marked the beginning of the great depression. The great depression would last for about ten years and put America’s economy in the worst shape it has even been . During this period, Stocks would drop to record lows, half of the American banks would perish, and the unemployment rates would sky rocket. The Depression would finally recede after World War II.
The next crash would not occur for decades but would affect the largest markets on the globe and would be referred to as black Monday. Black Monday, occurred on October 19, 1987. On this day stocks would drop 22% and this drop would send the global economy into a tailspin. 19 of the
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