Author Topic: History of the United States in 5 Crashes: Meltdowns That Defined a Nation  (Read 782 times)

DooDiligence

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abc | abev | aapl | bbh | brk.b | cri | cvs | dva | dis | ew | ffxdf | gpc | mo | nvo | sftby | vde

8 months left in the BRK.B 1st of the month DCA program (hoping 4 a selloff 2 go all in!)

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rkbabang

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #1 on: December 05, 2017, 05:44:27 AM »
Anyone read this book by Scott Nations?

It's on the daily deals today for $2.99

https://www.amazon.com/gp/product/B01M0TH9VL/ref=s9_acsd_hps_bw_c_x_6_w?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=merchandised-search-2&pf_rd_r=B8FQFBCP0D0SMBEQ0F1V&pf_rd_r=B8FQFBCP0D0SMBEQ0F1V&pf_rd_t=101&pf_rd_p=e709c2ec-0e6b-4a96-b272-5ee009db567a&pf_rd_p=e709c2ec-0e6b-4a96-b272-5ee009db567a&pf_rd_i=11552285011


Interesting that he doesn't mention the tech crash in 2000.


"The Panic of 1907: When the Knickerbocker Trust Company failed, after a brazen attempt to manipulate the stock market led to a disastrous run on the banks, the Dow lost nearly half its value in weeks. Only billionaire J. P. Morgan was able to save the stock market.

Black Tuesday (1929): As the newly created Federal Reserve System repeatedly adjusted interest rates in all the wrong ways, investment trusts, the darlings of that decade, became the catalyst that caused the bubble to burst, and the Dow fell dramatically, leading swiftly to the Great Depression.

Black Monday (1987): When “portfolio insurance,” a new tool meant to protect investments, instead led to increased losses, and corporate raiders drove stock prices above their real values, the Dow dropped an astonishing 22.6 percent in one day.

The Great Recession (2008): As homeowners began defaulting on mortgages, investment portfolios that contained them collapsed, bringing the nation’s largest banks, much of the economy, and the stock market down with them.

The Flash Crash (2010): When one investment manager, using a runaway computer algorithm that was dangerously unstable and poorly understood, reacted to the economic turmoil in Greece, the stock market took an unprecedentedly sudden plunge, with the Dow shedding 998.5 points (roughly a trillion dollars in valuation) in just minutes."

DooDiligence

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #2 on: December 05, 2017, 08:46:10 AM »
Anyone read this book by Scott Nations?

It's on the daily deals today for $2.99

https://www.amazon.com/gp/product/B01M0TH9VL/ref=s9_acsd_hps_bw_c_x_6_w?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=merchandised-search-2&pf_rd_r=B8FQFBCP0D0SMBEQ0F1V&pf_rd_r=B8FQFBCP0D0SMBEQ0F1V&pf_rd_t=101&pf_rd_p=e709c2ec-0e6b-4a96-b272-5ee009db567a&pf_rd_p=e709c2ec-0e6b-4a96-b272-5ee009db567a&pf_rd_i=11552285011


Interesting that he doesn't mention the tech crash in 2000.


"The Panic of 1907: When the Knickerbocker Trust Company failed, after a brazen attempt to manipulate the stock market led to a disastrous run on the banks, the Dow lost nearly half its value in weeks. Only billionaire J. P. Morgan was able to save the stock market.

Black Tuesday (1929): As the newly created Federal Reserve System repeatedly adjusted interest rates in all the wrong ways, investment trusts, the darlings of that decade, became the catalyst that caused the bubble to burst, and the Dow fell dramatically, leading swiftly to the Great Depression.

Black Monday (1987): When “portfolio insurance,” a new tool meant to protect investments, instead led to increased losses, and corporate raiders drove stock prices above their real values, the Dow dropped an astonishing 22.6 percent in one day.

The Great Recession (2008): As homeowners began defaulting on mortgages, investment portfolios that contained them collapsed, bringing the nation’s largest banks, much of the economy, and the stock market down with them.

The Flash Crash (2010): When one investment manager, using a runaway computer algorithm that was dangerously unstable and poorly understood, reacted to the economic turmoil in Greece, the stock market took an unprecedentedly sudden plunge, with the Dow shedding 998.5 points (roughly a trillion dollars in valuation) in just minutes."

I missed that.

Does seem like it should be included.

I'll pass, got a pile of stuff to read anyway.
abc | abev | aapl | bbh | brk.b | cri | cvs | dva | dis | ew | ffxdf | gpc | mo | nvo | sftby | vde

8 months left in the BRK.B 1st of the month DCA program (hoping 4 a selloff 2 go all in!)

-----

https://twitter.com/tunawish

flesh

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #3 on: December 05, 2017, 09:25:20 AM »
I really liked it. Its good preparation to understand the mechanisms and psychology/neuroses that are entangled causing crashes.

DooDiligence

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #4 on: December 05, 2017, 01:09:04 PM »
I really liked it. Its good preparation to understand the mechanisms and psychology/neuroses that are entangled causing crashes.

Well OK, since you put it that way...
abc | abev | aapl | bbh | brk.b | cri | cvs | dva | dis | ew | ffxdf | gpc | mo | nvo | sftby | vde

8 months left in the BRK.B 1st of the month DCA program (hoping 4 a selloff 2 go all in!)

-----

https://twitter.com/tunawish

JayGatsby

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #5 on: December 05, 2017, 01:32:32 PM »
Thanks might buy this. Like others, I have some catching up to do. Sometimes it's hard to capture history with a book. Hindsight can make it look all too sequential ("there was a crazy run of internet stocks with no revenue and then BOOM") when in actually there was irrational exuberance about a technology that did in fact lead to basically everything people predicted.

One thing I've found enlightening from Ray Dalio's book is how much they studied history. His quote is something along the lines of "everything is a modern version of something that happened in the past".


KCLarkin

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Re: History of the United States in 5 Crashes: Meltdowns That Defined a Nation
« Reply #6 on: December 05, 2017, 01:38:59 PM »
Haven't heard of this but I wonder how it compares to:
https://www.amazon.com/Anatomy-Bear-Lessons-Streets-bottoms/dp/1906659354

My first thought is that it is probably more useful to learn the history of bear markets rather than simple crashes.