Report: Markets 'Are Like 1987 Crash'

Quote from Q12:

I'd be interested to know how many times the Nasdaq has been down 8 consecutive days over the past 25 years... looking at the 1987 data, I don't show that we hit 8 days even then (in fact, I show the most consecutive down days as 5)... leading into the crash, we had 5 days lower, followed by an up day, then another 5 days lower, then an up day and finally 5 more days lower.
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For the Qs, look at 8/7/1990.

For the DJ30, look at 5/10/1989.
 
smitty,

are those the only 2 examples you were able to find? I took a look at the bloodbath throughout 2000 and it looks like the most consecutive down days for the ndq was 7...

thx.
 
The people that say interest rates are nowhere near where they were in 87 are only getting 1/2 of the picture correct.

Housing prices were nowhere near as overvalued in 87 as they are now.

would you rather pay 8% on 200k or 6% on 700k? cuz thats where the housing prices have gone to.

also, what was oil in 87? nowhere near $70 for this extended period of time.


This housing bubble burst will make the nasdaq bubble seem like a walk in the park.

When housing goes, it takes so many jobs with it.
 
Quote from Q12:

smitty,

are those the only 2 examples you were able to find? I took a look at the bloodbath throughout 2000 and it looks like the most consecutive down days for the ndq was 7...

thx.
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Yup, that's it. My data only goes to the mid eighties though.
 
Quote from mail2smitty:

Yup, that's it. My data only goes to the mid eighties though.
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thanks-

In both instances we saw a 30% drawdown for the nasdaq.... i suppose somehow though, it's still not really a bid deal!
 
Quote from YMsystemtrader:



This housing bubble burst will make the nasdaq bubble seem like a walk in the park.

When housing goes, it takes so many jobs with it.
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I think this is a great point. The speculation in housing being being directly linked to industry means a burst in the bubble will produce a big cascade.
 
Quote from JMowery1987:

I was born in 1987, I didn't know there was a big market crash.

How did it compare to the internet bubble bursting?
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it was terrible for me and my family...altough we were not in da mkt, everythin' suffered as a consequence and we had to liquidate our alfa romeo biz at a huge loss and sell many of our proprieties...we recoverd nicely since then but still a nightmare we went torugh and very close to lose our shirts...many of me friends highly leveraged in da mkt went completely b/k in no time..one of 'em hanged himself..very sad.
 
Quote from Bitstream:

it was terrible for me and my family...altough we were not in da mkt, everythin' suffered as a consequence and we had to liquidate our alfa romeo biz at a huge loss and sell many of our proprieties...we recoverd nicely since then but still a nightmare we went torugh and very close to lose our shirts...many of me friends highly leveraged in da mkt went completely b/k in no time..one of 'em hanged himself..very sad.
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... that is very sad.... :(

Do you think that if the same situation happened in the market today, it would be even worse than in 1987 or would people be better prepared for it?
 
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