Year 2008!:

Year 2008:

The year saw a historic collapse in the financial sector, which swept through the entire market. The most hit worst recession in the history of Global economy. Indian, Asian, European and US market witnessed all-time low record. The speed of wrecking up of the market was more faster than picking up. Recession, jobless, Bankruptcy were the major headlines of this year.

 Falling of the market started with Lehman Brothers declaration of bankruptcy. And then JPMC, Citigroup and on…..

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Major financial firm crisis (Week of September 14, 2008)

 

On Sunday, September 14, it was announced that Lehman Brothers would file for bankruptcy after the Federal Reserve Bank declined to participate in creating a financial support facility for Lehman Brothers. The significance of the Lehman Brothers bankruptcy is disputed with some assigning it a pivotal role in the unfolding of subsequent events. The principals involved, Ben Bernanke and Henry Paulson, dispute this view, citing a volume of toxic assets at Lehman which made a rescue impossible. Immediately following the bankruptcy, J.P. Morgan provided the broker dealer unit of Lehman Brothers with $138 billion to “settle securities transactions with customers of Lehman and its clearance parties” according to a statement made in a New York City Bankruptcy court filing.

The same day, the sale of Merrill Lynch to Bank of America was announced. The beginning of the week was marked by extreme instability in global stock markets, with dramatic drops in market values on Monday, September 15, and Wednesday, September 17. On September 16, the large insurer American International Group (AIG), a significant participant in the credit default swaps markets suffered a liquidity crisis following the downgrade of its credit rating. The Federal Reserve, at s AIG’s request, and after AIG has shown that it could not find lenders willing to save it from insolvency, created a credit facility for up to US$85 billion in exchange for an 79.9% equity interest, and the right to suspend dividends to previously issued common and preferred stock.

 

For more information, click Wikipedia. All information are gathered from this site.

Market Mayhem

There have been plenty of big selloffs in the stock market over the last month, but early on Friday Oct. 24, many market watchers thought it would bring the big one that would join other infamous days. For history’s sake, however, the days since Lehman Brothers’ chapter 11 have been momentous and notable enough. Here’s a look at some very bad days and periods for stocks that got investors’ attention over the past 80 years.

Crash of 1929 : The stock market crash of 1929 saw the market fall 12.8 percent on Oct. 28, 1929, known as “Black Monday,” but the market fell almost as sharply the day after. The crash contributed to the Great Depression of the 1930s and many also consider it part of a two-decade bear market. 

1973-1974 : During this period of the Nixon-Ford presidency, when inflation was a major concern because of the first oil spike, the Dow went from its Jan. 11, 1973  high of 1051.70 to a low of 577.60 on Dec. 6 1974, a 45.1 percent decline.

Oct. 19, 1987 : Known as Black Monday, or “The Crash,” the Dow fell 507.99 points, or 22.61 percent, as part of a broad global selloff.

Oct. 13, 1989 : The failure of a leveraged buyout of airline holding company UAL triggered what was then known as the “Mini Crash.” The Dow fell 190.58 points, a 6.91 percent decline. 

1997 : The financial crisis in Asia, primarily in South Korea, Indonesia and Thailand, had its largest impact on the US markets on Oct. 27, 1997 when the Dow dropped 554.26 points, 7.18 percent, forcing an early closing of the NYSE.

Dot-Com Bubble Burst : The tech sector was hit  hard as the dot-com bubble burst.  The Nasdaq peaked at 5048.62 on Mar. 10, 2000 before beginning a brutal two-month slide. By May 23, 2000, it was down 37.32  percent.

Sept. 17, 2001 : The Dow dropped 684.81 points (7.12 percent) on Sept. 17, 2001, the Monday the New York Stock Exchange resumed trading for the first time after the 9/11 attacks.

For more information, click CNBC. All information are gathered from this site.