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1987 Crash Remake??

Thursday, August 22, 2013 - 12:18 PM
From MarketWatch.com:

How the Fed could cause another crash - Brett Arends's ROI - MarketWatch

I noitced that MarketWatch.com writers are contributing to prediction of pending market crash one after another.  Paul Farrell seems to have a lot of friends around him. 

I am not sure whether there is an agenda/realism for this push; but when the stupid kid cries wolf everyday for several months, the prudent way may be to ignore him/them.

Thoughts?
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51hh51hh1,460 posts since
Jan 16, 2010
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1. Thursday, August 22, 2013 - 12:45 PM
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AllyAlly768 posts since
Jan 16, 2010
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2. Thursday, August 22, 2013 - 12:47 PM
Sorry my chart disappeared after the preview and when I hit the  post reply button Not sure why. 
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AllyAlly768 posts since
Jan 16, 2010
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3. Thursday, August 22, 2013 - 12:54 PM
Don't know the odds of another 1987 stock market crash, but if it does occur, it will also impact conservative savers. After a crash, people often stop investing in stocks and move their money into cash. Since money market funds pay so little, a lot of that money will probably go into deposit accounts. That will increase deposit demand and push down deposit rates.
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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
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4. Thursday, August 22, 2013 - 4:24 PM
We supposedly won't have another 1987 style stock market crash due to the "Plunge Protection Team".

"Plunge Protection Team" was the nickname given to the Working Group by The Washington Post in 1997. The team was initially perceived by some to have been created solely to shore up the markets or even manipulate them. The team was created in response to the 1987 market crash.

http://www.washingtonpost.com/wp-.../plunge.ht
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ShorebreakShorebreak2,362 posts since
Apr 6, 2010
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5. Thursday, August 22, 2013 - 4:56 PM
SB,

Thanks for the interesting read. 

I would not count on the Government (or whatever task force) to "save" the market; at least two major crashes occurred after the writing of the article; I do not see the effect of such a "Plunge Protection Team." 

The team is like the funeral service after the patient has declared death:D
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51hh51hh1,460 posts since
Jan 16, 2010
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6. Friday, August 23, 2013 - 4:08 PM
This post references the same author from market watch.  Do you find any information relayed in this post to be inaccurate?  I am not sure how to gauge the accuracy of the chart comparison of 1987 and the present.  I don't think there is a guarrantee that the market drops immediately.  Would you think, however, that a severe drop is inevitable in the future?  Or do you think the markets could avoid a severe correction or bear market?

http://www.zerohedge.com/news/2013-08-23/guest-post-1987-redux
Let’s see. Consumers are carrying more debt than they did in 2007. Corporations are carrying more debt than they did in 2007. The Federal government is carrying 60% more debt than it did in 2007. Cities and States are carrying more debt than they did in 2007. Interest rates have jumped by 80% in the last three months. The economy is clearly in recession, as retailer after retailer reports horrific results. Stocks are as overvalued as they were in 1929, 2000, and 2007. China is experiencing a real estate collapse. Japan is experiencing a cultural/economic/societal collapse. The Middle East is awash in blood. The European Union is held together by lies, delusion and false promises.

What could possibly go wrong? 

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MikeMike327 posts since
Feb 22, 2010
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7. Saturday, August 24, 2013 - 10:00 AM
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AllyAlly768 posts since
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