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Crash Of 1987

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The Crash of 1987, Black Monday, took place on October 19, 1987. During the Crash of 1987, the Dow lost 22% of its value in one day. Shareholders could not reach their brokers, brokers could not supply prices and computers were overloaded. The Crash of 1987 dwarfed the infamous Black Thursday of 1929. However, unlike the 1929 crash, the Crash of 1987 was short-lived. It took three years, not 35, for the Dow to recover to levels seen prior to the Crash of 1987. To prevent another Crash of 1987, the New York Stock Exchange installed circuit breakers to curb trading during periods of high volatility. Economists cite numerous reasons for the Crash of 1987, including increasing interest rates, high price-earnings ratios, trade and budget deficits, and program trading.



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