Tuesday, November 30, 2010
Why Thursday?
So I have a question, why did Black Thursday happen? I'm not sure if I sound totally stupid in asking this, but it's something that has made me wonder a bit. We all know about the banks crashing and the Great Depression, but what happened that made the stock market drop so much in one day? I mean, a 9% decline in 1 day? That seems like an extreme sudden coincidence. I guess what I want to know is what happened on Wednesday.
Subscribe to:
Post Comments (Atom)
Understanding the stock market is a science, and I can only give you a general answer. The stock market is not always logical, because it acts on fears and hopes. A little change causes more change to follow. The best way to describe what happened is the snowball effect. A few began to panic, the market falls, a few more panic, the market falls further, etc. People rush to take their money out of banks. The market collapses.
ReplyDelete