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Friday, October 19

Special: 25th Anniversary of The Crash of '87

You still remember this? I joined the game in 1991, and experienced this as an outsider.

Previously on MoreLiver’s:

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25th Anniversary Black Monday 1987 CrashThe Big Picture
Excellent linkfest
Revisiting the 1987 Crash The Big Picture

Lessons from the Crash of '87A Dash of Insight
I was a mere three weeks into my new job as research director for a group of market makers at the Chicago Board Options Exchange.  It was a dramatic experience.

A Computer Lesson Still UnlearnedNYT
What it did signify was the beginning of the destruction of markets by dumb computers. Or, to be fair to the computers, by computers programmed by fallible people and trusted by people who did not understand the computer programs’ limitations. As computers came in, human judgment went out.

Déjà Vu for the Market as the Black Monday Crash of '87 Turns 25Advanced Trading
There are several parallels between how participants responded to major market crashes in 1987 and 2008, including calls for more transparency, and a significant reshaping of market structure.

Another stock crash like 1987’s is inevitableMarketWatch
Prepare yourself for another stock market crash as big as the free fall in October 1987.

Happy Black Monday Friday to you!alphaville / FT
Black Monday Echoes With Computers Failing to Restore ConfidenceBB
A quarter century after the worst one-day stock crash in history, measures to prevent a repeat are failing to keep investors from losing confidence in the market.

1987 Crash as seen through TVThe Big Picture

After the Crash: Louis Rukeyser Wall Street Week Oct. 23, 1987The Big Picture

Black Monday After 25 YearsThe Big Picture

WSJ Reporters of Two Generations Remember 1987 CrashMarketBeat / WSJ
Wall Street Journal reporters E.S. Browning and Steven Russolillo joined Markets Hub for a cross-generational analysis of Black Monday, the 1987 stock-market crash.

Black Monday Remembered: Could it Happen Again?MarketBeat / WSJ
What have we learned since the 1987 stock market crash? Nanex Founder Eric Hunsader joined the Markets Hub this morning to discuss how the markets have changed

Investor Behavior in the October 1987 CrashThe Big Picture
Robert Shiller, Investor Behavior in the October 1987 Stock market Crash: Survey Evidence, NBER
Working Paper Series (scribd embedded, or download)

My Recollections from Black Friday, 1987The Reformed Broker

Crash of ’87 Recollections: ‘My Singularly Worst-Day Ever’MarketBeat / WSJ

Former SEC Chairman Remembers 1987 CrashMarketBeat / WSJ
Former Securities and Exchange Commission Chairman David Ruder remembers being at the helm of the SEC on Oct. 19, 1987, the day the Dow plummeted nearly 23%.

10 lessons from the 1987 stock market crashMarketWatch
The more things change, the more they stay the same — except computers are faster

So How Predictable Was 1987?Crossing Wall Street
What I find interesting in 1987 is seeing how arbitrary it all seemed. In 1987, there were several unusual events that all seemed to coalesce before the plunge

Black marks from Black MondayThe Economist
A big market crash happened 25 years ago this week. The wrong lessons were taken from it

Have we learned nothing?Free exchange / The Economist

Lessons From Black MondayPragCap
Some noteworthy observations about the 1987 crash that give lessons for today’s and future market environments

Art Cashin: Black Monday, An Unforgettable Single DayThe Big Picture
Fear seemed to disappear. Junior traders laughed at their cautious elders and told each other to “buy strength” rather than sell it, as each rally leg was soon followed by another.

MarketBeat Podcast: Remembering the Crash of 1987MarketBeat / WSJ

The Conditions that Led to the Black Monday in October 1987HistorySquared

As Black Monday Turns 25, Risk of Similar Crash PersistsAdvanced Trading

The speed and connectedness of today's buyers and sellers is so much faster, that if a crash occurred, it could be more devastating.


How I Caused the 1987 CrashBruce Krasting / ZH

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