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Friday The 13th Mini-crash
The Friday the 13th mini-crash, or Black Friday, was a stock market crash that occurred on Friday, October 13, 1989. The crash was apparently caused by a reaction to a news story of the breakdown of a $6.75 billion leveraged buyout deal for UAL Corporation, the parent company of United Airlines. When the UAL deal fell through, it helped trigger the collapse of the junk bond market. The deal unraveled because the Association of Flight Attendants pulled out of the deal when management, in negotiations over an Employee Stock Ownership Plan (ESOP) designed to fund the leveraged buyout, refused to agree to terms. The close Moments after the UAL deal fell through, the indices began their plunge. When the closing bell rang, the Dow Jones Industrial Average had dropped 190.58 points, or 6.91 percent, to 2,569.26; the NASDAQ Composite had shed 14.90 points, or 3.09 percent, to 467.30; and the S&P 500 Index had fallen 21.74 points, or 6.12 percent, to 333.65. The Dow Jones Transportatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Stock Market Crash
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles. A stock market crash is a social phenomenon where external economic events combine with crowd psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices (a bull market) and excessive economic optimism, a market where price–earnings ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants. Other aspects such as wars, large corporate hacks, changes in federal laws and regulations, and natural disasters within economically productive areas may also influence a significant decline i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Robert Shiller
Robert James Shiller (born March 29, 1946) is an American economist, academic, and author. As of 2022, he served as a Sterling Professor of Economics at Yale University and is a fellow at the Yale School of Management's International Center for Finance. Shiller has been a research associate of the National Bureau of Economic Research (NBER) since 1980, was vice president of the American Economic Association in 2005, its president for 2016, and president of the Eastern Economic Association for 2006–2007. He is also the co‑founder and chief economist of the investment management firm MacroMarkets LLC. Shiller is known for four major intellectual contributions: 1) he co-developed the Case-Shiller housing price index, which uses a statistical technique to value a house based upon recent sales prices of other houses; 2) he challenged the Efficient Market Hypothesis (EFM), using a statistical model that showed that the U.S. stock market was more volatile than it should be if the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Stock Market Crashes
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles. A stock market crash is a social phenomenon where external economic events combine with crowd psychology in a positive feedback loop where selling by some market participants drives more market participants to sell. Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices (a bull market) and excessive economic optimism, a market where price–earnings ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants. Other aspects such as wars, large corporate hacks, changes in federal laws and regulations, and natural disasters within economically productive areas may also influence a significant decline in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
1989 In Economic History
1989 was a turning point in political history with the "Revolutions of 1989" which ended communism in Eastern Bloc of Europe, starting in Poland and Hungary, with experiments in power-sharing coming to a head with the opening of the Berlin Wall in November, the Velvet Revolution in Czechoslovakia and the overthrow of the communist dictatorship in Romania in December; the movement ended in December 1991 with the dissolution of the Soviet Union. Revolutions against communist governments in Eastern Europe mainly succeeded, but the year also saw the suppression by the Chinese government of the 1989 Tiananmen Square protests in Beijing. It was the year of the first Brazilian direct presidential election in 29 years, since the end of the military government in 1985 that ruled the country for more than twenty years, and marked the redemocratization process's final point. F. W. de Klerk was elected as State President of South Africa, and his regime gradually dismantled the aparthei ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Simon & Schuster
Simon & Schuster LLC (, ) is an American publishing house owned by Kohlberg Kravis Roberts since 2023. It was founded in New York City in 1924, by Richard L. Simon and M. Lincoln Schuster. Along with Penguin Random House, Hachette Book Group USA, Hachette, HarperCollins and Macmillan Publishers, Simon & Schuster is considered one of the Big Five (publishers), 'Big Five' English language publishers. , Simon & Schuster was the third largest publisher in the United States, publishing 2,000 titles annually under 35 different Imprint (trade name), imprints. History Early years In 1924, Richard L. Simon, Richard Simon's aunt, a crossword puzzle enthusiast, asked whether there was a book of ''New York World'' crossword puzzles, which were popular at the time. After discovering that none had been published, Simon and M. Lincoln Schuster, Max Schuster decided to launch a company to exploit the opportunity.Frederick Lewis Allen, ''Only Yesterday: An Informal History of the 1920s'', p. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Friday The 13th
Friday the 13th is considered an unlucky day in Western superstition. It occurs when the 13th day of the month in the Gregorian calendar falls on a Friday, which happens at least once every year but can occur up to three times in the same year. Common years that begin on Thursday have three Friday the 13ths in February, March, and November, such as 2009, 2015, and 2026. Leap years that begin on Sunday (i.e. that follow Dominical Letter AG) such as 2012 and 2040, also have three Friday the 13ths in January, April, and July. The years 2001, 2002, 2004, 2006, 2007, 2013, 2017, 2018, 2019, 2020, 2023 and 2024 had two Friday the 13ths, as will 2029; 2003, 2005, 2008, 2010, 2011, 2014, 2016, 2021, 2022 and 2025 had only one Friday the 13th, as will 2027 and 2028. For a month to have a Friday the 13th, the first day of the month must begin on a Sunday. History Unluckiness of 13 One source mentioned for the unlucky reputation of the number 13 is a Norse myth about twelve gods ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Black Monday (1987)
Black Monday (also known as Black Tuesday in some parts of the world due to time zone differences) was a global, severe and largely unexpected stock market crash on Monday, October 19, 1987. Worldwide losses were estimated at US$1.71 trillion. The severity sparked fears of extended economic instability or a reprise of the Great Depression. Possible explanations for the initial fall in stock prices include a fear that stocks were significantly overvalued and were certain to undergo a correction, persistent US trade and budget deficits, and rising interest rates. Another explanation for Black Monday comes from the decline of the dollar, followed by a lack of faith in governmental attempts to stop that decline. In February 1987, leading industrial countries had signed the Louvre Accord, hoping that monetary policy coordination would stabilize international money markets, but doubts about the viability of the accord created a crisis of confidence. The fall may have been acceler ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Savings And Loan Crisis
The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of approximately a third of the savings and loan associations (S&Ls or thrifts) in the United States between 1986 and 1995. These thrifts were banks that historically specialized in fixed-rate mortgage lending. The Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 thrifts from 1986 to 1989, whereupon the newly established Resolution Trust Corporation (RTC) took up these responsibilities. The two agencies closed 1,043 banks that held $519 billion in assets. The total cost of taxpayers by the end of 1999 was $123.8 billion with an additional $29.1 billion of losses imposed onto the thrift industry. Starting in 1979 and through the early 1980s, the Federal Reserve sharply increased interest rates in an effort to reduce inflation. At that time, thrifts had issued long-term loans at fixed interest rates that were lower than prevailing deposit rates ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Early 1990s Recession
The early 1990s recession describes the period of economic downturn affecting much of the Western world in the early 1990s. The impacts of the recession contributed in part to the 1992 U.S. presidential election victory of Bill Clinton over incumbent president George H. W. Bush. The recession also included the resignation of Canadian prime minister Brian Mulroney, the reduction of active companies by 15% and unemployment up to nearly 20% in Finland, civil disturbances in the United Kingdom and the growth of discount stores in the United States and beyond. Primary factors believed to have led to the recession include the following: restrictive monetary policy enacted by central banks, primarily in response to inflation concerns, the loss of consumer and business confidence as a result of the 1990 oil price shock, the end of the Cold War and the subsequent decrease in defense spending, the savings and loan crisis and a slump in office construction resulting from overbuilding duri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Irrational Exuberance (book)
''Irrational Exuberance'' is a book by American economist Robert J. Shiller of Yale University, published March 2000. The book examines economic bubbles in the 1990s and early 2000s, and is named after Federal Reserve Chairman Alan Greenspan's famed 1996 comment about "irrational exuberance" warning of such a possible bubble. Overview Published at the height of the dot-com boom, the text put forth several arguments demonstrating how the stock markets were overvalued at the time, and likely to offer poor return on investment based on analysis of the cyclically adjusted price-to-earnings ratio which Shiller co-developed in the late 1980s. By happenstance, the dot-com bubble peaked the month of the book's publication as measured by the Nasdaq stock index, before a gradual collapse by over 80% in the next two years. The second edition of ''Irrational Exuberance'' was published in 2005 and was updated to cover the housing bubble. Shiller wrote that the real estate bubble might soon bu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Dow Jones Transportation Average
The Dow Jones Transportation Average, (DJTA, also called the "Dow Jones Transports"), index ticker symbol DJT is a U.S. stock market index from S&P Dow Jones Indices of the transportation sector, and is the most widely recognized gauge of the American transportation sector. It is the oldest stock index still in use, being in use longer than its better-known relative, the Dow Jones Industrial Average (DJIA). Components The index is a running average of the stock prices of twenty transportation corporations, with each stock's price weighted to adjust for stock splits and other factors. As a result, it can change at any time the markets are open. The figure mentioned in news reports is usually the figure derived from the prices at the close of the market for the day. Changes in the index's composition are rare, and generally occur only after corporate acquisitions or other dramatic shifts in a component's core business. Should such an event require that one component be replac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
Leveraged Buyout
A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of the acquired company are often used as collateral for the financing, along with any equity contributed by the acquiror. While corporate acquisitions often employ leverage to finance the purchase of the target, the term "leveraged buyout" is typically only employed when the acquiror is a financial sponsor (a private equity investment firm). The use of debt, which normally has a lower cost of capital than Equity (finance), equity, serves to reduce the overall cost of financing for the acquisition and enhance returns for the private equity investor. The equity investor can increase their projected returns by employing more leverage, creating incentives to maximize the proportion of debt relative to equity (i.e., debt-to-equity ratio). Whi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] [Amazon] |
