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In case you were unaware, it was 22 years ago today . . .  to celebrate, pick up as copy of Tim Metz’ Black Monday.

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600px-Black_Monday_Dow_Jones.svg

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “Happy Black Monday!”

  1. I was in Law School, blissfully unaware that a 23% “Correction” was significant . . .

  2. leftback says:

    LB was looking down a microscope. A 23% correction would have cost me about $23 back then.

  3. kmckellop says:

    I parked everything into stable value (GICs) in late July… I missed the whole thing.. got back in at the beginning of 88….Oh and October 19th is my Birthday…. “Is my Birthday… Its my Birthday….”

  4. manhattanguy says:

    Long $DUG for a trade..oil should go down here.

  5. goldfever54 says:

    It was a nice Oct. day in San Francisco where I was listening to the radio from my work bench where I sat as a diamond setter. I was involved a little with the market and as I hear the prices fall I wanted in. This was the big lesson learned that day and the days that follow. The small investor was locked out of the market there was not way to get in or out during the crisis. I wanted in and I am sure there were many other small investor that would have helped to slow the free fall that Black Monday.
    Actually, this became a great day for the small investor. After the dust settled the securities “gods” opened a pipeline for the small investor to place order during periods of high volatility ahead of the institutional players. It became the day the small investor took a leap with their direct pipeline to out trade the big boys. That day can be summed up by a break-down in technology and nothing more. The system broke down.
    Mark Harris

  6. MRegan says:

    Forgive the OT but I thought some here might appreciate this post on the USD:

    http://incakolanews.blogspot.com/2009/10/us-dollar-some-smarts-from-trend.html

  7. Clem Stone says:

    I was a newbie and i got hammered. 22 years later i’m only half the idiot i was then, and today strikes me as the perfect day to come out of the weeds and get my revenge. Laying out the biggest negative bet of my life as we speak.

  8. I suppose you’d call it a little ironic that on the anniversary of Black Monday the VIX flirts with a 20 handle for the first time in over a year.

    At $20 I’m calling this market complacent!

  9. wally says:

    It was the day of my mother’s funeral; it was my birthday… and it was Black Monday. I’ll remember it.

  10. Simon says:

    Comiserations and congratulations wally. I turned 21 a week later and I had no idea that something significant had happened. Gradually over that summer (in Auckland New Zealand) I noticed that people became more relaxed and had time to talk and that there were fewer BMW’s dashing around the place. The stock market crash of 1987 was the start of a very tough period in New Zealand. The cities had a huge commercial realestate bubble the countryside was already in an terrible ressession as we had lost access to our exclusive markets in the UK (Due to the European union) and the government had been running a huge deficit for years under the very Kenyensian leadership of Rob Muldoon ironically of our National or supposedly right wing party. Personally I think that recession was more like what is happening in America now but for us.

  11. and *Everybody, still, talks of LTCM as the beginning of Greenspan’s ‘Mis-Adventures’..

    They may care to, at least, Rent-A-Clue, a good portion of Wall St. FAILed that day..

  12. Patrick Neid says:

    Nothing before or since has equaled the shear terror and panic of Oct 19th and 20th. For the traders that were there the 19th was bad but marginally tradeable but the 20th was the worst with the lock limit down opening where it stayed for over an hour. Rumor has it that Soros lost a billion dollars when he faced a forced liquidation. It was at that moment with the spooz at such a huge discount to cash that the world ended. Even the put owners and shorts thought they would never be paid. If I told you some of what happened at the EFHutton office in San Francisco you would not believe me.

    Moments later when the impossible occurred and the spooz lifted off limit down the fabled “Greenspan put” was born. We have been living with its aftermath ever since.

  13. tenaciousd says:

    Has anyone seen this inflation-adjusted Dow chart? (http://www.dogsofthedow.com/dow1925cpilog.htm) Does anyone know of a similar of better chart? Is it valid? I think it’s interesting that we rarely see equities adjusted for inflation the same way as GDP, etc.