The other culprit pinpointed as contributing to the severe crash was computerized trading. The Nikkei 225 Index returned to its pre-crash levels after only five months. [47], A feedback loop of noise-induced-volatility has been cited by some analysts as the major reason for the severe depth of the crash. ", "Black Monday: The Stock Market Crash of 1987", "The Day Stocks Rose but the Dow Plunged", "From random walks to chaotic crashes: The linear genealogy of the efficient capital market hypothesis", "Statement by Chairman Greenspan on providing liquidity to the financial system", "Banking crises in New Zealand–an historical perspective", "Transmission of volatility between stock markets", "Looking Back at Black Monday:A Discussion With Richard Sylla", "Restrictions on Short Sales: An Analysis of the Uptick Rule and Its Role in View of the October 1987 Stock Market Crash", "The real reason for 1987 crash, as told by a Salomon Brothers veteran", "Stock markets halted for unprecedented third time due to coronavirus scare", "Portfolio insurance and other investor fashions as factors in the 1987 stock market crash", United States Government Publishing Office, Post-Napoleonic Irish grain and cropland price shocks, 2011 Tōhoku earthquake and tsunami stock market crash, 2015–2016 Chinese stock market turbulence, List of stock market crashes and bear markets, Federal Reserve v. Investment Co. Institute, https://en.wikipedia.org/w/index.php?title=Black_Monday_(1987)&oldid=979163528, Short description is different from Wikidata, Articles with unsourced statements from August 2020, Articles with disputed statements from August 2020, Creative Commons Attribution-ShareAlike License, This page was last edited on 19 September 2020, at 05:10. On Friday, October 16, the DJIA fell 108.35 points (4.6%) to close at 2,246.74 on record volume. [68] Although the Fed's holdings expanded appreciably over time, the speed of expansion was not excessive. [63], On the morning of October 20, Fed Chairman Alan Greenspan made a brief statement: "The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system". During the 2010 crash, leading US stock indices, including the Dow, Black Tuesday is the stock market crash that occurred on October 29, 1929. This is the story of how a group of outsiders took on the blue-blood, old-boys club of Wall Street and ended up crashing the world’s largest financial system, a Lamborghini limousine and the glass ceiling. According to Shiller, the most common responses were related to a general mindset of investors at the time: a "gut feeling" of an impending crash, perhaps brought on by "too much indebtedness".