Top 10 Financial Crises
Here is yet another click-whoring festival, this time spread over 3 pages (it would have been 10 on CNN/Money’s pages).
Top 10 Financial Crises
10. The Panic of 1907: The fourth so-called ”panic” in 34 years.
9. The Mexican Peso Crisis 1994 aka “The December Mistake” Punta !
8. Argentine economic crisis – 1999 If you have no money, is it a good idea to print more?
7. German hyperinflation – 1918-24 If you have to print a 1,000-billion Mark note, you probably have too much inflation.
6. Souk Al-Manakh - 1982 Try not to use post dated to buy stocks
5. Black Monday – 1987 Can we call a 23% drop in a single day a black swan?
4. Russian financial crisis – 1998 devaluation of the ruble and cancellation of debt is never good for a local stock market.
3. East Asian financial crisis – 1997 aka the Asian Contagion
2. Black Tuesday - 1929 — Really? One day, and not the entire Great Depression?
1. 1973 Oil Crisis — Big energy increases cause recessions
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Source:
Top 10: Financial Crises
Ross Bonander
Entertainment Correspondent [WTF?!?]
AskMen.com
http://www.askmen.com/top_10/top_10_150/166_top_10_list.html
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February 26th, 2009 at 2:49 pm
I think #1 is “The Bankster Gangster Looting of America” of 2007-2008.
Profits are for us… losses are for you.
Heads we win… tails you loose.
Give us your tax money to bail out, and recapitalize the banksters, while half of
the new Administration doesn’t even pay it’s taxes.
First Geithner, then Daschle, and now Rahm Emanuel!
Rahm Emanuel Doesn’t Pay His Taxes But He’s Making Sure Obama’s Raising Yours…
http://www.infowars.com/rahm-emanuel-doesnt-pay-taxes-so-why-should-you/
Michael
February 26th, 2009 at 2:57 pm
Interesting list, but I find myself wondering if they bothered to look at the 19th century. We had some very rough times from 1877 to 1896–basically a 20 year long period of incessant boom and depression.
Also, your link provides an economic stimulus for your readers. I got a free diet Dr. Pepper by reading TBP!
http://www.freedietdrpepper.com/
February 26th, 2009 at 3:05 pm
Jim Cramer, “Stop Trading” 2/26/09:
“A lot of stocks, what we’re seeing, Erin, is there are levels that aren’t working, you know, you gotta wait til they go lower because there’s bad news that has to continually be built into stocks now that Obama’s president.”
A decades-long bubble bursts and this clown jumps in front of the blame-the-new-guy parade. Chumps like Cramer have as much credibility as the Steroid Boys in baseball. It’s the exact same phenomenon: “It’s somebody else’s fault that I’m such a human stain.”
What a m.f. pig. He’d stab his own mother to make a buck. Hell, maybe he did. Pig. Hope he chokes on his “cheap scotch” or breaks his neck slipping on his “cheap linoleum floor.”
Pig-effing pig.
February 26th, 2009 at 3:14 pm
HMMMMMM…….6 of 10 in the last 30 years. We must be doing something right….ain’t we?????????????
February 26th, 2009 at 3:20 pm
DC, he did do exactly what you’re describing. It’s all in Confessions of a Street Addict. The only reason he went to his dying mother’s bedside was because his boss at Goldman forced him to. And when his daughter was born he refused to leave his hedge fund to be with his family. It’s all there, like Mein Kampf.
February 26th, 2009 at 3:23 pm
i think u meant
9. The Mexican Peso Crisis 1994 aka “The December Mistake” PUTA !
there’s a difference between edge and bitch.
February 26th, 2009 at 3:27 pm
“Entertainment Correspondent [WTF?!?]”
…….Need one say more?
February 26th, 2009 at 3:44 pm
I like Cramer- what he is describing is his opinion of market expectations for the Obama presidency- everyone is entitled to his opinion regardless of thier political slant or persuasion- personally I think once the market gets a real good feel that the Obama administration is going to paper over everything over without making the decisive decisions needed to restore our financial markets- then you will see the market drift downward for the forseeable future- and I like Obama- but when he picked tax dodging Treasury Secretary Geithner I knew the “change” thing was a bunch of bullshit.
February 26th, 2009 at 3:46 pm
Ahab,
The problem with Cramer is that there is no Jim Cramer–there are only Jim Cramers. First he hated Geithner. Then he loved Geithner. Now he hates Geithner. Sister, mother, sister mother!!!
February 26th, 2009 at 3:48 pm
There might be some common ground. This from Microsoft Money on Obama’s budget:
“Republicans will call it class warfare. They will be correct,” wrote Andrew Leonard on the liberal Web site Salon. “But Republicans have no one to blame but themselves. If you cut taxes on the rich, and the rich drive the economy into a ditch, your position of moral superiority becomes shaky.”
February 26th, 2009 at 3:54 pm
Or you could call these the top ten cures for shopaholics.
February 26th, 2009 at 3:54 pm
Gotta love how the markets can hardly even pretend to want to rally at this point. Usually after the drops we’ve seen, the markets would at least reflexively bounce up a few hundred Dow points for a few days or so. It’s the ultimate slacker market… Why bother trying if you’re not gonna get anywhere?
HCF
February 26th, 2009 at 3:57 pm
@franklin411
True
@AGG
excellent point
February 26th, 2009 at 3:59 pm
On a one day basis nothing even comes close to Monday Oct 19, 1987 followed by the lock limit down opening on Tuesday Oct 20th. I mean nothing. Forget zombie banks, we are talking zombie people by the 10′s of thousands absolutely shell shocked such that even now we can never forget. It caused permanent damage. What’s happening now is tame by comparison. At least now there has been plenty of warning akin to a hurricane coming vs an 8.O earthquake that shows up in the middle of the night.
I’ve been in both. I’ll take the hurricane.
February 26th, 2009 at 4:14 pm
But there was the 1720 South seas bubble, the Mississippi scheme in France, and the Tulip mania. There were crashes in 1837 and 1857, and I think someone also mentioned the late 1800s.
And we might get something worse than the 1987 crash in this market. Perhaps not in a day with the circuit breakers, but with a series of days.
February 26th, 2009 at 4:25 pm
Rich tax dodgers are in a tizzy!
Pay taxes? Have our names, fame, reputation and noblese oblige tarnished before the ragtag, ruffian, low class masses? Never! Call the lawyers. This is WAR! (call Matt Drudge too while you’re at it).
http://www.cnbc.com/id/29385606
February 26th, 2009 at 4:30 pm
i guess we ran out of room to cover the ‘panics’ from before the 1900s. cause there were a lot of them. and
panic is the term we used prior to coining depression. and it was only used to keep from spooking the public cause they knew what a panic was.
one observation. maybe some one can explain this.
how is it that the GDP is down less than %.5 but the economy is tanking?
is that because it no longer reflects reality?
February 26th, 2009 at 4:42 pm
Why does CNBC keep letting Hank Greenberg on TV?
He seems to be delusional. He keeps coming on talking about how AIG could have been saved and should still be saved…etc…etc….talking about hanging on to a ‘dream.’
Hank you, lost most of your money and you’re holding a lot of shares in a worthless firm. Just sell your shares and go get a nice little condo down in Mexico and just relax…write a book…tell us what it’s like to make and lose billions in wealth.
Maria, show this man some mercy and stop letting him come on TV.
February 26th, 2009 at 4:43 pm
willid3… think of the economy as in terms of like inventory turnover. The economy is still there… but once you take out me paying you.. you paying someone else.. paying someone else paying someone else… all under the table… all the uncaptured econony… hence non-reported GDP… the spin and turnover of money is not as quick as it was in 2006… hence the economy is slowing because people are holding there money a wee bit longer… because… we think we need to save because we feel poorer.
Yet… the GDP number remains the same… because… I think it’s just a guest-a-mate… of what’s happening in the real world.
February 26th, 2009 at 4:56 pm
@willid3: You need to understand how GDP is derived.
GDP is based on a rolling 120-month average of events recorded by participating families, much like the Nielsen Ratings on TV. Every time a “capturable event” takes place in one of those families, the event is logged at the U.S. Bureau of Labor Statistics. Member families are chosen at random from households earning more than $500,000 a year.
“Capturable events” include:
1. Tuition payments to private schools (Score 2 points)
2. Tax and/or mortgage payments on second homes (Score 2 points)
3. Social leisure events (dinner party = 1 point, soiree = 2 points, “little get together” = 3 points, “gallery opening” = 4 points, “charity gala” = 5 points)
4. DUI (OUI in some jurisdictions) charges reduced to Disorderly Conduct (1 pt), reduced to speeding violation (2 pts), dropped entirely with judicial reprimand to state trooper (5 points)
And so on. Total points are amassed as of year end and compared to the previous year’s total. GDP growth rate is the % change year-over-year.
GDP is essentially a quality of life indicator for those in the $500k+ income bracket.
February 26th, 2009 at 5:00 pm
so then this year GDP should be heading down in hurry then? since all of that turnover in money isn’t happening?
February 26th, 2009 at 6:33 pm
These lists are the reverse images of the former slice-of-life polls touting hot stocks or real estate markets. If you are a true contrarian, might the near-universal and increasing frantic negativity may be a sign of capitulation?
February 26th, 2009 at 6:50 pm
alb,
you’d have to see some Real Selling, first, followed by a wholesale repudiation of “Equities”..
the ICI rep was just on The Hill testifying that 401(k) ‘de-vestor’ patterns were Still within historic activity channels..
IOW: peep are hoping denial really is a river, for fear that they’d be, otherwise, crying one..
http://www.ici.org/statements/tmny/09_house_401k_tmny.html#P115_28260
put on your waders..
February 26th, 2009 at 6:59 pm
How is Black Monday 1987 a financial crisis?
February 26th, 2009 at 7:02 pm
Transor Z,
As the great John Denver used to say, “Far Out!”
Good one.
February 26th, 2009 at 7:02 pm
As for taxing the wealthy – they should pray they are not indicted for fraud and have every penny they have taken in fines AND serve substantial jail time. I’m a one-note-johnny when it comes to law enforcement’s role in any effort at “recovery” (in both meanings of the word) we might undertake.
This is, was, and will remain, largely, a law enforcement issue.
http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html
February 26th, 2009 at 7:16 pm
A word on the market:
A long time ago when I was a lowly plebe at the USMA at West Point, we had a description of the time period after Christmas Leave which lasted until slightly after semester finals. It was called GLOOM PERIOD. I think we are in one of these on a global scale. Unlike peppy times like the gay 90s, roaring 20s, dot com 90s, and the recent crush terrorist nut (and anyone else in the way)2000s, this type of period is marked by the lack of fanfare. A lot is happening but you won’t hear about most of it until we are in a peppy period again. During the 30s the USA became a modern country with electric utilities and safe train and car travel. Glass manufacturing techniques made great advances during this time as well. I may be wrong but it seems to me that these gloom periods are times when people get serious, put their nose to the grindstone and figure ways out of problems instead of hyping scams like they do in peppy periods. So I’m kind of pleased. So many stupid financial ideas have been shown up for what they always were that it gives me hope.
February 26th, 2009 at 7:22 pm
Here is my updated outlook:
My weekend call for a market rout is on target, with market down about 2.5% so far this week. I also said wait to buy gold miners and GDX is down 10% this week….a great buying opportunity will occur soon.
As for the technical picture, the new short interest report is still showing few shorts to be squeezed and today, despite a down day, total market put/call ptinted .68…a one day number that has only been lower only a handful of times in the last 3 years. Keep the shorts on.
February 26th, 2009 at 7:24 pm
I don’t McGraw-Hill will be publishing any book this guy might be writing either
http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html
February 26th, 2009 at 7:27 pm
N0 mention of the hyperinflation Mugabe has caused in Zimbabwe?
February 26th, 2009 at 7:31 pm
Marcus Aurelius,
I’m 100% in agreement.
The incredible mental gymnastics the double talking lawyers for the elite have to go through to influence legislators to water down laws at federal, state and local levels so that criminality is practically a function of income , location and even education makes my head hurt. I am so tired of seeing laws on the books selectively enforced. I’m so tired of the supposed democratic method of testing a law being to break it and take it to the Supreme Court. That’s incredibly stupid and propagates corruption (maybe that’s why they do it). And the high falluting term “Stari Decisis” which means “case law” is nothing but cherry picked horse shit for the benefit or detriment of the fortunate or unfortunate party according to a judge’s whim.
So I add the caveat that we have to have one set of laws for everyone before we can go the law enforcement route. I don’t hold out much hope for that. The system gaming makes anyone dizzy. For example, how many people from the “middle class” are on Biden’s “middle class” commision? I agree things are improving but the pace is glacial.
February 26th, 2009 at 7:33 pm
Andy Tabbo @ 4:42
I agree.
However, Obama may decide to backstop AIG’s CDS obligations:
http://www.bloomberg.com/apps/news?pid=20601087&sid=as_tDgcGmTdE
February 26th, 2009 at 7:40 pm
AGG Says:
When you distill it, there’s plenty of case and statute law regarding fraud, theft by deception, or whatever you chose to name it. No need to rename this rose – you can’t step into this mess without getting plenty of it on your shoes. There’s also plenty of interaction – in the form collusion and conspiracy – that would seem to be covered by the RICO Act.
February 26th, 2009 at 8:14 pm
WOW. Blown away by the calm truths and links.
@Cerulean: why should I have been so surprised about Emanuel? Or Michelle having a 300K job at U of C Hospital until Barack got elected, and then they eliminated the job. (No one quite so qualified?)
@Transzor Z: God, I wish I’d said that. It is so, so much close to how things work. Oh, you forgot converting everything to littering charges, so everyone makes out.
@Gritznbeer: Amen. Interestingly, CNBC GAs … What’s his name, opened a new issue versus Santelli, why aren’t they prosecuting these thieves as energetically as they are terrorists to reclaim the billions? After they did far more damage.
February 26th, 2009 at 8:18 pm
That’s it. I’m moving on for a while. This blog is the same thing every day.
February 26th, 2009 at 8:29 pm
Damn – I thought he’d never leave. Okay, y’all, let’s move on to the real topics of the day . . .
February 26th, 2009 at 9:20 pm
Here are some interesting views on the really big picture:
http://www.marketwatch.com/news/story/These-13-tipping-points-have/story.aspx?guid={8E033373-78B5-4FEB-997F-2D16097A46B4}
February 26th, 2009 at 9:45 pm
One person’s crisis is an others opportunity.
But I digress.
February 27th, 2009 at 12:02 am
@ SWMOD52
“This blog is the same thing every day”
I agree, but only because the same problems still exist that existed yesterday, last week, 6 months ago, 2 two years ago … Has anybody yet: fixed the banks? Regulated derivatives? Prosecuted fraudsters? Illuminated folks as to misleading unemployment or inflation (CPI) data? Housing prices can still fall much further. There’s nothing “new” to talk about until real solutions to crippling problems are accepted. Reading the huffpost article linked by Marcus Aurelius above (my apologies for posting it again – my eagerness to post it led me to overlook other posts) shows you how insane the people and culture became, so coming back to reality is proving a bit more than a “hard landing” (Does anyone even use that term anymore? Kudlow?). I thought by now, given the gravity of the situation, that truly effective solutions would have overpowered the greed and deceit, but damn was I wrong. That’s why I’m still reading BP and it’s illuminating commenters.
February 27th, 2009 at 1:02 am
Actually, the #1 financial crisis is still in the making. It involves the U.S. through a combination of #8 and #4.
February 27th, 2009 at 12:43 pm
Is it a coincidence that 50% of those train wrecks happened under Greenspanic’s tenure (simple answer: no!)
“But Republicans have no one to blame but themselves. If you cut taxes on the rich, and the rich drive the economy into a ditch, your position of moral superiority becomes shaky.”
Shaky? It’s more like the sucker died at the scene
During the 30s the USA became a modern country with electric utilities and safe train and car travel. Glass manufacturing techniques made great advances during this time as well. I may be wrong but it seems to me that these gloom periods are times when people get serious, put their nose to the grindstone and figure ways out of problems instead of hyping scams like they do in peppy periods.
I assume it is because customers once again focused on value and thus the things that gained supremacy in the marketplace were made of quality. In times like that value feeds its own virtuous circle. There is probably a whole economics study in the understanding that wealth = abundant cheap trinkets. You would almost think that it was the other way around