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The Great Depression stock market crash was much less brutal than many think, but the consequences were severe. Initial drop about 10%, going to 20% with peak t
by okket 9y ago
The Great Depression stock market crash was much less brutal than many think, but the consequences were severe. Initial drop about 10%, going to 20% with peak to peak at ~50%, but YoY it only was ~20% down.
https://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929 https://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
- charlesdm 9y agoHowever, since many people were using excessive leverage, they got margin called and their positions were liquidated, leaving them royally screwed. If the market goes down 50% to recover to -25%, that’s fine. But if the market goes down 50% when you are using leverage 4:1 you will be liquidated quite fast.
- walshemj 9y agoThere is a great story in Harpo Marx's autobiography where one or more of the Marx brothers had a massive margin call and covered it by doing a command performance for some of the major mobsters.
- Retric 9y agoOver a few weeks the Dow fell ~50% from it's 1929 peak Sept. 3, 1929, 381.17. Longer term it as a ~90% drop by July 8, 1932 at 41 points. So, it depends on the timeframe your talking about. If you bought in 1910 or 1990 then the 1929 or 2000 crashs seems less important than if you bought at the Peak.