[Question] Does History at any point give an example of a complete market crash?

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Anon_1967
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[Question] Does History at any point give an example of a complete market crash?

Post by Anon_1967 » Tue Aug 07, 2018 2:32 pm

Hey there,

was there in history ever an incident of a market crash that not only lasted for a few years but managed to bring down a whole civilization?

I red about the Tulip bulb in 1593 and wondered to what extent bubles can be traced back in History and how severe they can go, but could not find much about it.

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siamond
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by siamond » Tue Aug 07, 2018 2:41 pm

Well, a whole civilization might be a little too much, but in both Russia and China, the stock market closed for decades. It wasn't due to a crash though, [OT comment removed by admin LadyGeek]

To read more about past market crashes, here is the best book I know of, a 'must read' for all investors, I think:

Devil Take the Hindmost: A History of Financial Speculation
by Edward Chancellor
Link: Amazon link

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Phineas J. Whoopee
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by Phineas J. Whoopee » Tue Aug 07, 2018 5:05 pm

Rental building landlords in Atlanta were pretty much wiped out in 1864. I don't know if that's a whole civilization collapse. I suppose it depends on one's political opinion about what civilization is, so let's not go into it.

The Chicago fire of 1871 and the San Francisco earthquake of 1906 must have had similar effects, at least locally.

PJW
Last edited by Phineas J. Whoopee on Tue Aug 07, 2018 5:38 pm, edited 1 time in total.

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Blueskies123
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by Blueskies123 » Tue Aug 07, 2018 5:16 pm

Losing wars and communism are the closest things to what you are looking for. Russia and all the Eastern European counties, Germany, China, Japan.
If you find yourself in a hole, stop digging

H-Town
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by H-Town » Tue Aug 07, 2018 5:20 pm

Anon_1967 wrote:
Tue Aug 07, 2018 2:32 pm
Hey there,

was there in history ever an incident of a market crash that not only lasted for a few years but managed to bring down a whole civilization?

I red about the Tulip bulb in 1593 and wondered to what extent bubles can be traced back in History and how severe they can go, but could not find much about it.
Were you around 2000 and 2008?

david1082b
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by david1082b » Tue Aug 07, 2018 5:22 pm

War destruction and hyperinflation meant Germany, Austria and Japan had nearly minus 100% return from 1914 to 1950 apparently. The market crashes didn't cause their problems but were a result of them (places like the Soviet Union and Mao's China closed down their markets but those nations were not destroyed by that, they survived until political changes opened the markets back up). Bubbles have been going on for as long as markets exist no doubt.

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LadyGeek
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by LadyGeek » Tue Aug 07, 2018 6:49 pm

I removed an off-topic comment. This is a "no politics" forum. Please state your opinions in a factual manner. Opinions of the political process are off-topic. See: Politics and Religion
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protagonist
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by protagonist » Tue Aug 07, 2018 7:18 pm

" Almost every major country has had a bear market in which share prices have dropped over 80%, and some countries have had drops of over 90%. " I don't know if that is true, but there are plenty of examples over the past century. https://www.globalfinancialdata.com/GFD ... in-history

The Cyprus Stock Exchange All Share Index hit a high of 11443 on November 29, 1999. It has not recovered. On October 24, 2013 it hit a low of 91. (99.2% loss over 14 years).

The Greek market lost 92.5% between 1999 and 2012. The German market lost 92.5% between 1918 and 1922. The Dow lost 89% between 1929 and 1932.

The Nikkei was around 40000 in 1989. It steadily declined to around 7000 in 2009. , and is still about 50% off its 1989 peak.

Following the major crash of the Rio de Janeiro market in 1989, it never recovered its status.....the major market in Brazil is now the Sao Paolo Bovespa.

Complete market crash? All empires rise and fall. The Egyptian, Greek and Roman economies have not recovered over millenia. Mongolia still has a long way to go following their 13th century crash. And what about poor Phoenicia?

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Mursili
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Re: [Question] Does History at any point give an example of a complete market crash?

Post by Mursili » Tue Aug 07, 2018 8:19 pm

protagonist wrote:
Tue Aug 07, 2018 7:18 pm
Complete market crash? All empires rise and fall. The Egyptian, Greek and Roman economies have not recovered over millenia. Mongolia still has a long way to go following their 13th century crash. And what about poor Phoenicia?
As you point out, even the "poor" Phoenicians' conquerors (the Romans and others) have had complete "market crashes." In the case of the Romans, no individual may have noticed the decline in the economy since it was stretched out so long. In the case of the Hittites, it was likely some plague or the "Sea Peoples" or such (or both). Either way, with the groups like the Hittites, the market was not what people were worrying about at the end.
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