{"id":198667,"date":"2007-10-19T05:13:00","date_gmt":"2007-10-19T10:13:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/10\/19\/20-years-ago-today-black-monday-and-we-have-learned-nothing\/"},"modified":"2007-10-19T05:13:00","modified_gmt":"2007-10-19T10:13:00","slug":"20-years-ago-today-black-monday-and-we-have-learned-nothing","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/10\/19\/20-years-ago-today-black-monday-and-we-have-learned-nothing\/","title":{"rendered":"20 Years Ago  Today, Black Monday, and We Have Learned Nothing"},"content":{"rendered":"<p>Some background for those too young to remember: On October 19, 1987, the Dow collapsed, losing 22.6 %, and the S&amp;P 500 fell by 20.4 percent. This was the largest single day loss in the history of Wall Street.<\/p>\n<p>I recall turning on the news 10 minutes late, and seeing that the 2nd story of the day was that we had &#8220;shelled an Iranian oil platform&#8221;.  I was surprised, and I wondered what on earth happened to bump a story like that off the lead<sup>*<\/sup>.  As I found out later, that story about the naval engagement was even bigger than I had thought.  It was not just shelling an oil platform, it was the largest surface engagement since the end of World War II, with half the Iranian navy being sunk.<\/p>\n<p>Nouriel Roubini has an article in Foreign Policy, <a href=\"http:\/\/www.foreignpolicy.com\/story\/cms.php?story_id=4026\">Have We Learned the Lessons of Black Monday?<\/a>, which asks that question.<\/p>\n<p>His answer, and mine, are both an emphatic &#8220;No&#8221;, though for different reasons.<\/p>\n<p>Dr. Roubini looks at the market fundamentals, and draws some disturbing similarities with 1987, while I look at the increasing pace of deregulation of securities markets since the Carter administration, and draw parallels with 1929.<\/p>\n<p>Non only have we not learned lessons, but we have unlearned lessons, because too many people make too much money as a result of this stupidity.<\/p>\n<p><span style=\"font-size:85%;\"><sup>*<\/sup>Yes, the good old days, when <a href=\"http:\/\/40yrs.blogspot.com\/2007\/10\/this-is-oj-and-britney-free-zone-too.html\"> They Who Must Not Be Named<\/a> would never be given the lead story on the evening news.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Some background for those too young to remember: On October 19, 1987, the Dow collapsed, losing 22.6 %, and the S&amp;P 500 fell by 20.4 percent. This was the largest single day loss in the history of Wall Street. I recall turning on the news 10 minutes late, and seeing that the 2nd story of &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[973],"tags":[],"class_list":["post-198667","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198667"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=198667"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198667\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=198667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=198667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=198667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}