Heavy Selling and Widespread Panic Sign of Bad Times

The Birmingham Post (England), October 19, 2007 | Go to article overview

Heavy Selling and Widespread Panic Sign of Bad Times


There have been a number of major falls for equity markets over the last century, and while each varies in longevity and consequences they can all be categorised by heavy selling and widespread panic.

Major financial crashes have included:

August 2007

Higher interest rates in the US led to the collapse of the risky sub-prime mortgage market and increasing numbers of people defaulting on loans. Credit fears rocked world markets and on August 16 the FTSE 100 Index slumped more than four per cent - its worst one day percentage fall since March 2003.

Falls over the month saw central banks pump cash into money markets to free up liquidity to keep the banking system afloat as uncertainties over the extent of losses from the sub-prime market left banks guarded and reluctant to lend to each other.

February 27, 2007

The FTSE 100 slumped by 148.6 points - its biggest one-day drop in almost nine months, as markets across the globe plunged in reaction to speculation that China may put in place measures to curb its economic growth. The situation was compounded by warnings from former US Federal Reserve chief Alan Greenspan that the United States may be on the verge of recession.

The Dow Jones fell by 3.3 per cent, or 416 points - the worst slide since September 11 2001 - prompting the Footsie to fall a further 114.6 points the following day. More than pounds 64 billion was wiped from the value of blue-chip shares in the space of two days.

September 2001

London's blue-chip stocks lost around 600 points in the weeks following the terrorist attack in the United States, with shares hitting a four year low as nervous dealers off loaded shares.

On Wall Street the Dow slid 6.9 per cent when trading resumed after the four day break following the September 11 attacks.

Interest rate cuts by central banks failed to calm the markets and corporate profit warnings added to the sense of panic. Trading was so volatile that at one point, the London stock exchange computer system collapsed, leaving jittery traders in the dark about the direction of the market.

2000

The stock market fell in love with the fast growing internet sector during the 1990s, with investors throwing money at so-called dot.com pioneers.

In the new world climate anything seemed possible and share prices soared. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Heavy Selling and Widespread Panic Sign of Bad Times
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.