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WORST STOCK MARKET CRASHES

In the present global credit crisis and stock market crashes across the globe, let us see the worst stock market crash over the last century. These are as follows:

1 ) Wall Street 1929-32 -89%
The Wall Street Crash heads the list, with the US stock market falling by 89 per cent between 1929 and 1932. The burst of the speculative bubble led to further selling as people who had borrowed money to buy shares had to cash them in a hurry when their loans [were] called in.

2 ) US NASDAQ 2000-2002 -82%
The second biggest collapse came from the technology-rich US Nasdaq index, which fell by 82 per cent following the bursting of the dot com bubble in 2000.
3 ) Japan NIKKEI 1990-2003 -79%
In third place, with a 79 per cent decline, was the Japanese stock market, which suffered a protracted slide in price from 1990 to 2003 as a share and property price bubble burst and turned into a deflationary nightmare.

4 ) London 1973-74 -73%
Next came the UK stock market’s 73 per cent drop in 1973 and 1974. set against the backdrop of a dramatic rise in oil prices, the miners’ strike and the downfall of the Heath government.


5 ) Hong Kong 1997-98 -64%
The Hong Kong stock market’s heavy fall in 1997-1998 came as investors deserted emerging Asian shares, including a very overheated Hong Kong stock market.

6 ) London 2000-2003 -52%
 The UK took sixth place in the table with a 52 per cent market fall between 2000 and 2003 as investors suffered the consequences of the collapse of the technology bubble.
 7 ) Wall Street 1937-38 -49%
This share price fall was [triggered] by an economic recession and doubts about the effectiveness of Franklin D Roosevelt’s New Deal policy.

8 ) Wall Street 1906-07 -48%
Markets took fright after President Theodore Roosevelt had threatened to rein in the monopolies that flourished in various industrial sectors, notably railways.

9 ) Wall Street 1919-21 -46%
There were fears that the new automobile sector was becoming overheated and that car ownership had reached saturation point.

10 ) Wall Street 1901-03 -46%
Cause: The market was spooked by the assassination of President McKinley in 1901, coupled with a severe drought later the same year.


Does the cause and implication of current market crisis is similar to the repeated history?



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