2020 Stock Market Crash
The 2020 stock market crash refers to the sharp and rapid decline in global stock markets in February and March 2020, largely triggered by the COVID-19 pandemic. This crash led to significant volatility, widespread investor panic, and a major economic downturn. Governments and central banks implemented various measures to stabilize the markets and support the economy during this period.
4 Key excerpts on "2020 Stock Market Crash"
eBook - ePubA History of Financial Crises
Dreams and Follies of Expectations
- Cihan Bilginsoy(Author)
- 2014(Publication Date)
- Routledge(Publisher)
...10 The crash of 1929 DOI: 10.4324/9781315780870-10 Memories of most financial calamities eventually fade away. To new generations they seem like dated, largely puffed-up anecdotes. Even scholars and experts often think of past crises as mere subjects of curiosity that are no longer pertinent to modern times, and consign them to the proverbial dustbin of history. If there is one exception, however, to the tendency to forget or discount the past, it is the Wall Street crash of October 1929. In the summer of 1929 record-high stock prices were considered to signal the prosperous, productive, new-era US economy. Between early September and the end of October, however, prices fell by 40 percent. By fall 1932 the stock-price index was down 80 percent from its 1929 peak. In the aftermath of the crash about 40 percent of banks went bankrupt, the US economic engine came to a stop, industrial production contracted by more than 50 percent, and the rate of unemployment increased alarmingly. This momentous event was seared into the public conscience for decades to come and has become the standard to which every new financial crisis is compared. The 1929 crash and the subsequent Great Depression was also a turning point in economic policy and theory. In the realm of policy widespread legislative changes restructured financial markets. New federal agencies and the reconstituted Federal Reserve System (Fed) imposed and enforced rules and regulations on private financial institutions to ensure the stable functioning of the banking system and exchanges. In the intellectual arena the crisis shook faith and confidence in the laissez-faire doctrine that predicted that self-adjusting and self-disciplining powers of markets were sufficient to maintain stability in both the financial and real sectors of the economy...
eBook - ePubResearch on Pandemics
Lessons from an Economics and Finance Perspective
- Yezhou Sha, Susan Sunila Sharma, Yezhou Sha, Susan Sunila Sharma(Authors)
- 2021(Publication Date)
- Routledge(Publisher)
...There were also different magnitudes of travel bans. Some countries like US imposed travel bans to and from a particular country while a country like India took a more stringent approach to close its borders. There is no uniformity, neither in the policy stance taken by governments nor in implementation of policies. It is difficult to concretely tell what precisely worked for countries. Judging by the reaction of the stock markets it seems a combination of travel bans, lockdowns, and stimulus packages did work in containing stock markets. Data suggest that the declaration of COVID-19 was the single most devastating event for stock markets. The bulk of the respite to markets resulted from travel bans. The data signal possible overreaction and market correction. When we observe how each of the 25 countries’ stock market (proxied by price returns) reacted to cases of COVID-19 infections and deaths, we see that during the early stages stock prices in the vast majority of the countries negatively reacted but with time as countries reached 100,000 infections and 100 deaths, for example, the reaction in 50% of the markets was positive suggesting a possible market correction. 6. Concluding Remarks and Directions for Future Research The descriptive analysis we provide lays the foundation for more data analysis in search of how COVID-19 has impacted the financial system. The data we present offer a contemporaneous effect on the stock market from specific events associated with COVID-19. Our goal was to provide an understanding of government responses to COVID-19 and seek an understanding of their consequences. Our goal was not to engage in econometric analysis – something we leave for future research. Econometric work is needed to establish the causal relation between COVID-19 and financial markets...
eBook - ePubThe New York Stock Exchange
A Guide to Information Sources
- Lucy Heckman(Author)
- 2017(Publication Date)
- Routledge(Publisher)
...64 pages. The story of the Stock Market Crash for young people. Discusses causes and effects of Crash. Explains basics of investing, the procedures for buying and selling stocks, and the differences between bull and bear markets. Profiles notable businessmen and investors of the time including Henry Ford, William C. Durant, Charles Mitchell, and Thomas Lamont. Compares the Crash of 1929 with that of 1987. Provides glossary of terms including “broker,” “margin,” “stock,” “ticker tape,” “Wall Street,” etc. With a bibliography and an index. 221. Morris, Joe Alex. What a Year! New York: Harper & Brothers, 1956. 338 pages. Concerns political, economic, and cultural events of 1929. Includes chapter on the 1929 Crash that studies causes and effects. Provides description of events of the Crash on the trading floor of the NYSE. With illustrations among which are: the New York Stock Exchange during the 1929 Crash and a portrait of Mr. and Mrs. Richard Whitney. * New York Stock Exchange. Report of the President. see item 190 above. * Noyes, Alexander Dana. The Market Place: Reminiscences of a Financial Editor see item 166 above. 222. Noyes, Alexander Dana. “The Stock Market Panic.” Current History 31 (December 1929): 618-623. Written by the Financial Editor, New York Times. Contends that Stock Market Crash was inevitable since credit facilities were seriously overstrained. Credit facilities were from domestic and international sources. Credit acquired was used to facilitate further stock purchases at wildly increasing prices. Among contributing factors to violence and timing of Panic were: protective measures taken by European markets after use as a credit resource by Wall Street; warnings regarding the American credit situation by responsible bankers; and many of the ringleaders of the Wall Street speculation, finding themselves in an overextended position, were attempting to extricate themselves...
eBook - ePubThe Chinese Birdcage
How China's Rise Almost Toppled the West
- Heleen Mees(Author)
- 2016(Publication Date)
- Palgrave Macmillan(Publisher)
...© The Author(s) 2016 Heleen Mees The Chinese Birdcage 10.1057/978-1-137-58886-9_6 Begin Abstract 6. The Economic Fallout Heleen Mees 1 (1) Formerly New York University, Brooklyn, New York, USA End Abstract Wall Street As the global financial crisis unfolded, global stock markets crashed. In September 2008, on the day that Lehman Brothers filed for bankruptcy, the Dow Jones Industrial Average plunged 504 points to close at 10,917.51. The next day, Asian markets follow suit with Japan ’s Nikkei 225 index closing down 570 points at 11,609. Russia suspended stock market trading for two days as the panic escalated. That week, stock markets around the world shed 5 percent for another day. By the end of that week, as the first contours of a bailout plan began to surface, stock markets recovered somewhat, but not for long. Wall Street continued its rout in the last week of September, as America’s biggest savings-and-loan company, Washington Mutual, was seized by the Federal Deposit Insurance Corporation and sold to J.P. Morgan. On September 29, as US Congress failed to pass the $700 billion bailout plan, the Dow Jones plummeted 777 points. Bank shares fell sharply as the credit crunch threatened banks across Europe. The second week of October, a global stock market rout started in Asia, with Japan ’s Nikkei index falling almost 10 percent, its biggest drop in 20 years. The Shanghai Composite Index was relatively unperturbed, as the stock market crash in China had already started in October 2007, for mostly domestic reasons unrelated to the financial crisis. The FTSE 100, on the other hand, plunged more than 10 percent, falling under the 4000 mark for the first time in five years. The Dow Jones Industrial Average fell almost 700 points to 7882...
