October is a red flag month for crashes. More specifically, October in any year before, during or after a Presidential election. In the last 100 years or so, the biggest crashes in the stock market happened under the above scenario. Economists have no idea why it happens in October. It just does.
Panic of 1907: If the great depression didn't happen, this would be the biggest crash in US history. The whole American banking system crashed and it took JP Morgan and Rockerfeller and a few others to literally keep the financial system afloat with their own money. This crash was the reason we got the Federal Reserve. It happened in October, a year before the 1908 election.
Great Depression: Enough said, October, 1929 the year after an election. Hoover was barely in office 7 months.
1987 Stock Market crash: The largest one day drop in the stock market is incorrectly attributed to the Great Depression. That crash happened over a few days. The stock market dropped over 22% on Monday, October 19, 1987 a year before the 1988 election. Largest drop in US history in one day. It would have dropped further but the government told the stock market to close. They literally stopped trading and since then adopted that as a mechanism if that happens again. It did happen again....
2008
2008 Great Recession: October, a month before the election of Obama. Housing based crash which started with now defunct, Lehman Brothers. And then the rest of Wall Street who bought MBS (Mortgage Backed Securities). The government put in rules to stop them from buying such things and over the next 8-10 years slowly let them do the same again.
So, the next 3 Octobers could be the one trigger. The big one. I'm seeing a lot of warnings from very respected people. As in all crashes, black folks are hurt more than anyone else.
By this time if you're not prepared, not much you can do in one month if it happens. But it may be wise to think of a 'what if' scenario and what you might do. People will have different ideas and suggestions. I haven't done enough personally and I know about it. You can only do what you can do I guess, but at least, if nothing else, be aware of the possibility of a crash happening.
Panic of 1907: If the great depression didn't happen, this would be the biggest crash in US history. The whole American banking system crashed and it took JP Morgan and Rockerfeller and a few others to literally keep the financial system afloat with their own money. This crash was the reason we got the Federal Reserve. It happened in October, a year before the 1908 election.
Great Depression: Enough said, October, 1929 the year after an election. Hoover was barely in office 7 months.
1987 Stock Market crash: The largest one day drop in the stock market is incorrectly attributed to the Great Depression. That crash happened over a few days. The stock market dropped over 22% on Monday, October 19, 1987 a year before the 1988 election. Largest drop in US history in one day. It would have dropped further but the government told the stock market to close. They literally stopped trading and since then adopted that as a mechanism if that happens again. It did happen again....
2008
2008 Great Recession: October, a month before the election of Obama. Housing based crash which started with now defunct, Lehman Brothers. And then the rest of Wall Street who bought MBS (Mortgage Backed Securities). The government put in rules to stop them from buying such things and over the next 8-10 years slowly let them do the same again.
So, the next 3 Octobers could be the one trigger. The big one. I'm seeing a lot of warnings from very respected people. As in all crashes, black folks are hurt more than anyone else.
By this time if you're not prepared, not much you can do in one month if it happens. But it may be wise to think of a 'what if' scenario and what you might do. People will have different ideas and suggestions. I haven't done enough personally and I know about it. You can only do what you can do I guess, but at least, if nothing else, be aware of the possibility of a crash happening.
