Top Finacial crises in last 100 years
1973 oil crisis
The 1973 oil crisis started on October 15, 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC (consisting of the Arab members of OPEC plus Egypt and Syria) proclaimed an oil embargo "in response to the U.S. decision to re-supply the Israeli military during the Yom Kippur war. OAPEC declared it would no longer ship oil to the United States and other countries if they supported Israel in the conflict. Independently, the OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to stabilize their real incomes by raising world oil prices. This action followed several years of steep income declines after the end of Bretton Woods, as well as the recent failure of negotiations with the "Seven Sisters" earlier in the month.
The 1973 "oil price shock", along with the 1973–1974 stock market crash, have been regarded as the first event since the Great Depression to have a persistent economic effect.
The Wall Street Crash of 1929
The 1973 oil crisis started on October 15, 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC (consisting of the Arab members of OPEC plus Egypt and Syria) proclaimed an oil embargo "in response to the U.S. decision to re-supply the Israeli military during the Yom Kippur war. OAPEC declared it would no longer ship oil to the United States and other countries if they supported Israel in the conflict. Independently, the OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to stabilize their real incomes by raising world oil prices. This action followed several years of steep income declines after the end of Bretton Woods, as well as the recent failure of negotiations with the "Seven Sisters" earlier in the month.
The 1973 "oil price shock", along with the 1973–1974 stock market crash, have been regarded as the first event since the Great Depression to have a persistent economic effect.
The Wall Street Crash of 1929
The Wall Street Crash of 1929, also known as the Great Crash, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and longevity of its fallout.
Three phrases—Black Thursday, Black Monday/Tuesday are used to describe this collapse of stock values. All three are appropriate, for the crash was not a one-day affair. The initial crash occurred on Black Thursday (October 24, 1929), but it was the catastrophic downturn of Black Monday and Tuesday (October 28 and October 29, 1929) that precipitated widespread panic and the onset of unprecedented and long-lasting consequences for the United States. The collapse continued for a month.
The Asian Financial Crisis
The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown (financial contagion).
The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial over extension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.
Black Monday
In financial markets, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong, spread west through international time zones to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average dropped by 508 points to 1739 (22.6%). By the end of October, stock markets in Hong Kong had fallen 45.8%, Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. New Zealand's market was hit especially hard, falling about 60% from its 1987 peak, and taking several years to recover. (The terms Black Monday and Black Tuesday are also applied to October 28 and 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929.
The Russian financial crisis
The Russian financial crisis (also called "Ruble crisis") hit Russia on 17 August 1998. It was triggered by the Asian financial crisis, which started in July 1997. During the ensuing decline in world commodity prices, countries heavily dependent on the export of raw materials were among those most severely hit. Petroleum, natural gas, metals, and timber accounted for more than 80% of Russian exports, leaving the country vulnerable to swings in world prices. Oil was also a major source of government tax revenue.
And of course the present Financial crisis which started with the US Subprime will find a top place in the list.
Source :wikipedia.org
MarketS DailY - Feb 27
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2754 -17 pts
Commodities
News Today
* U.S. President Barack Obama unveils his first detailed vision of the federal budget which calls for $3.6 trillion in spending that he says will halve the federal deficit by the end of his first term.
* Japan's industrial output tumbles by a record 10% in January
* Cisco Systems Inc. has begun cutting jobs as part of a restructuring that the tech giant had said could involve the elimination of up to 2,000 positions.
* Number of Americans applying for first-time unemployment benefits rises to 667,000. Continuing claims top 5 million for the first time.
* Royal Bank of Scotland (RBS) announced UK’s biggest ever loss by any company, of £24.1billion.
* The rupee weakened to an all-time low past 50.65 against the dollar early on Friday, weighed down by heavy dollar demand from importers to meet month-end commitments.
| Dow 7182 |  | -88.81 | (-1.22%) |
| Nasdaq 1391 | | -33.96 | (-2.38%) |
| S&P 753 | | -12.07 | (-1.58%) |
Europe
| FTSE 100 3916 |  | +66.66 | (+1.73%) |
| CAC 40 2745 | | +47.92 | (+1.78%) |
| DAX 30 3943 | | +96.41 | (+2.51%) |
Asia at 9 30 AM
| Nikkei 225 7542 | | +84.13 | (+1.13%) |
| Hang Seng 12915 | | +20.18 | (+0.16%) |
SGX Nifty 2754 -17 pts
Commodities
| Light Crude (NYM) | 45.22 | (+2.72) |
| Gold (CMX) | 942.60 | (-23.60) |
News Today
* U.S. President Barack Obama unveils his first detailed vision of the federal budget which calls for $3.6 trillion in spending that he says will halve the federal deficit by the end of his first term.
* Japan's industrial output tumbles by a record 10% in January
* Cisco Systems Inc. has begun cutting jobs as part of a restructuring that the tech giant had said could involve the elimination of up to 2,000 positions.
* Number of Americans applying for first-time unemployment benefits rises to 667,000. Continuing claims top 5 million for the first time.
* Royal Bank of Scotland (RBS) announced UK’s biggest ever loss by any company, of £24.1billion.
* The rupee weakened to an all-time low past 50.65 against the dollar early on Friday, weighed down by heavy dollar demand from importers to meet month-end commitments.
MarketS DailY - Feb 26
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2749 -3pts
Commodities
News Today
* Britain's economy shrank at its fastest pace since 1980 in the last three months of 2008, unrevised official figures confirm.
* Sales of existing US homes fall 5.3% to 12-year low.
* Singapore's economy contracted at an annualized 16.4% in the October-to-December quarter, its sharpest pace of contraction in 33 years.
* US Government issues details of bank stress test, Banks that fail the test would have to provide securities that could be converted to common stock in order to get additional government funds.
* US President Barack Obama said Wednesday his administration would lay down "clear rules of the road" for the crippled financial industry with a new 21st century regulatory framework.
| Dow 7271 | | -80.05 | (-1.09%) |
| Nasdaq 1425 | | -16.40 | (-1.14%) |
| S&P 765 | | -8.24 | (-1.07%) |
Europe
| FTSE 100 3849 | | +32.54 | (+0.85%) |
| CAC 40 2697 | | -11.13 | (-0.41%) |
| DAX 30 3846 | | -49.54 | (-1.27%) |
Asia at 9 30 AM
| Nikkei 225 7563 | | +101.99 | (+1.37%) |
| Hang Seng 12852 | | -152.76 | (-1.19%) |
SGX Nifty 2749 -3pts
Commodities
| Light Crude (NYM) | 42.50 | (+2.54) |
| Gold (CMX) | 966.20 | (-3.30) |
News Today
* Britain's economy shrank at its fastest pace since 1980 in the last three months of 2008, unrevised official figures confirm.
* Sales of existing US homes fall 5.3% to 12-year low.
* Singapore's economy contracted at an annualized 16.4% in the October-to-December quarter, its sharpest pace of contraction in 33 years.
* US Government issues details of bank stress test, Banks that fail the test would have to provide securities that could be converted to common stock in order to get additional government funds.
* US President Barack Obama said Wednesday his administration would lay down "clear rules of the road" for the crippled financial industry with a new 21st century regulatory framework.
Obama's First speech to the Congress
Republican Louisiana Gov. Bobby Jindal says Obama plan is Irresponsible
Bernanke Expects recovery by 2010
Federal reserve Chairman Ben Bernanke addressed the Senate Banking Committee on Tuesday.
In his Speech, Bernanke said an economic turnaround will only occur "if actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability." He also acknowledged the recovery might not go as well as hoped.
Bernanke also told that "there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery."
"This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside," he said. He also acknowledged that hat no matter what the Fed and Treasury Department do to address the problems in the housing market, home prices and sales will not start to rebound until there's a broader recovery in the economy and job market.
MarketS DailY - Feb 25
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2751 + 24 pts
Commodities
News Today
* In his first address to a joint session of Congress, U.S. President Barack Obama says his economic agenda -- which includes money to jump-start job-creation and invest in green energy, health care and education -- is a first step to turn things around
* Hong Kong GDP forecast to drop 2% to 3% in 2009.
* Standard & Poor’s (S&P) lowered the outlook for India’s credit rating from stable to negative on Tuesday, indicating higher possibility of a downgrade.
*Third fiscal stimulus package announced by the government on Tuesday in the form of cuts worth Rs 30,000 crore in service tax, excise duty and countervailing duty on imports.
* Federal Reserve chairman Ben Bernanke said Tuesday he sees a "reasonable prospect" for an end to the deep US recession this year
| Dow 7351 | | +236.16 | (+3.32%) |
| Nasdaq 1442 | | +54.11 | (+3.90%) |
| S&P 773 | | +29.81 | (+4.01%) |
Europe
| FTSE 100 3816 | | -34.29 | (-0.89%) |
| CAC 40 2708 | | -19.82 | (-0.73%) |
| DAX 30 3896 | | -40.70 | (-1.03%) |
Asia at 9 30 AM
| Nikkei 225 7366 | | +97.48 | (+1.34%) |
| Hang Seng 12945 | | +146.85 | (+1.11%) |
SGX Nifty 2751 + 24 pts
Commodities
| Light Crude (NYM) | 39.96 | (+1.52) |
| Gold (CMX) | 969.50 | (-25.50) |
News Today
* In his first address to a joint session of Congress, U.S. President Barack Obama says his economic agenda -- which includes money to jump-start job-creation and invest in green energy, health care and education -- is a first step to turn things around
* Hong Kong GDP forecast to drop 2% to 3% in 2009.
* Standard & Poor’s (S&P) lowered the outlook for India’s credit rating from stable to negative on Tuesday, indicating higher possibility of a downgrade.
*Third fiscal stimulus package announced by the government on Tuesday in the form of cuts worth Rs 30,000 crore in service tax, excise duty and countervailing duty on imports.
* Federal Reserve chairman Ben Bernanke said Tuesday he sees a "reasonable prospect" for an end to the deep US recession this year
MarketS DailY - Feb 24
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2684 -51 pts
Commodities
News Today
*The Dow and S&P 500 has tumbled to levels not seen in nearly 12 years, ending at the lowest point since May 1997.
* President Obama raises concerns over the rising deficit, aims to cut it to half by end of his first term at office.
* The world needs a "global New Deal" to haul it out of the economic crisis it faces, Prime Minister Gordon Brown of the United Kingdom said Sunday.
* Swiss banks lost more than a quarter of their deposits last year as customers withdrew some 1.41 trillion Swiss francs ($1.21 trillion) amid financial crisis.
* Citigroup, with assets worth $1.95 trillion or Rs 9,72,075 cr, now values less than SBI, India's largest bank.
| Dow 7115 | | -250.89 | (-3.41%) |
| Nasdaq 1388 | | -53.51 | (-3.71%) |
| S&P 743 | | -26.72 | (-3.47%) |
Europe
| FTSE 100 3851 | | -38.33 | (-0.99%) |
| CAC 40 2728 | | -22.68 | (-0.82%) |
| DAX 30 3936 | | -78.21 | (-1.95%) |
Asia at 9 30 AM
| Nikkei 225 7184 | | -192.22 | (-2.61%) |
| Hang Seng 12653 | | -521.75 | (-4.11%) |
SGX Nifty 2684 -51 pts
Commodities
| Light Crude (NYM) | 38.44 | (-1.59) |
| Gold (CMX) | 995.00 | (-7.20) |
News Today
*The Dow and S&P 500 has tumbled to levels not seen in nearly 12 years, ending at the lowest point since May 1997.
* President Obama raises concerns over the rising deficit, aims to cut it to half by end of his first term at office.
* The world needs a "global New Deal" to haul it out of the economic crisis it faces, Prime Minister Gordon Brown of the United Kingdom said Sunday.
* Swiss banks lost more than a quarter of their deposits last year as customers withdrew some 1.41 trillion Swiss francs ($1.21 trillion) amid financial crisis.
* Citigroup, with assets worth $1.95 trillion or Rs 9,72,075 cr, now values less than SBI, India's largest bank.
Nationalize US Banks says Krugman
The Nobel prize winner for economics Paul Krugman says its better to nationalize US banks before they go to brink of Break Down.
In his column he says " What Alan Greenspan, the former Federal Reserve chairman — and a staunch defender of free markets — actually said was, “It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring.” I agree. "
Read More of his views in his NYT column : http://www.nytimes.com
In his column he says " What Alan Greenspan, the former Federal Reserve chairman — and a staunch defender of free markets — actually said was, “It may be necessary to temporarily nationalize some banks in order to facilitate a swift and orderly restructuring.” I agree. "
Read More of his views in his NYT column : http://www.nytimes.com
MarketS DailY - Feb 20
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2745 - 46 pts
Commodities
News Today
* DOW closes below 7500, Financial stocks push blue-chip index to lowest close since Oct. 9, 2002.
* Government files suit seeking identities of 52,000 UBS clients in the U.S. who allegedly hid their accounts in violation of tax laws.
* Rising U.S. savings indicates an economic recovery is under way, forecasters say.
* Deflation threat looms : The US government will report its key inflation index Friday morning, the Consumer Price Index, and economists believe the report is likely to show the first year-over-year drop in prices since 1955.
* Satyam's CEO AS Murty shot of a letter to employees asking for their 'personal sacrifices and help' to reduce operational expenses.
* RBI staff go on strike today, banking services to be paralyzed.
| Dow 7466 | | -89.68 | (-1.19%) |
| Nasdaq 1443 | | -25.15 | (-1.71%) |
| S&P 779 | | -9.48 | (-1.20%) |
Europe
| FTSE 100 4018 | | +11.54 | (+0.29%) |
| CAC 40 2873 | | -1.47 | (-0.05%) |
| DAX 30 4215 | | +10.25 | (+0.24%) |
Asia at 9 30 AM
| Nikkei 225 7463 | | -94.87 | (-1.26%) |
| Hang Seng 12747 | | -276.53 | (-2.12%) |
SGX Nifty 2745 - 46 pts
Commodities
| Light Crude (NYM) | 39.48 | (+4.86) |
| Gold (CMX) | 976.50 | (-1.70) |
News Today
* DOW closes below 7500, Financial stocks push blue-chip index to lowest close since Oct. 9, 2002.
* Government files suit seeking identities of 52,000 UBS clients in the U.S. who allegedly hid their accounts in violation of tax laws.
* Rising U.S. savings indicates an economic recovery is under way, forecasters say.
* Deflation threat looms : The US government will report its key inflation index Friday morning, the Consumer Price Index, and economists believe the report is likely to show the first year-over-year drop in prices since 1955.
* Satyam's CEO AS Murty shot of a letter to employees asking for their 'personal sacrifices and help' to reduce operational expenses.
* RBI staff go on strike today, banking services to be paralyzed.
MarketS DailY - Feb 18
US Markets
Europe
Asia at 9 30 AM
SGX Nifty 2726 -35 pts
Commodities
News Today
* President Obama signs $787 billion stimulus package, saying it will create 3.5 million jobs, help pull U.S. out of one of the worst recessions in generations.
* DOW ended at 7,552.6, remaining a hair above its Nov 20 closing low of 7,552.29. S&P 500 Slips below 800 for the first time in 3 months.
* General Motors and Chrysler said they need an additional $21.6 billion in federal loans between them because of worsening demand for their cars and trucks.
* A possible bout of deflation is now a key risk facing the economy says FED.
* Satyam has called back more than 1,500 overseas employees, attached to projects onsite.
| Dow 7553 | | -297.81 | (-3.79%) |
| Nasdaq 1471 | | -63.70 | (-4.15%) |
| S&P 789 | | -37.67 | (-4.56%) |
Europe
| FTSE 100 4034 | | -100.62 | (-2.43%) |
| CAC 40 2875 | | -86.99 | (-2.94%) |
| DAX 30 4217 | | -150.04 | (-3.44%) |
Asia at 9 30 AM
| Nikkei 225 7541 | | -104.04 | (-1.36%) |
| Hang Seng 12745 | | -200.05 | (-1.49%) |
SGX Nifty 2726 -35 pts
Commodities
| Light Crude (NYM) | 34.93 | (-2.58) |
| Gold (CMX) | 967.50 | (+25.30) |
News Today
* President Obama signs $787 billion stimulus package, saying it will create 3.5 million jobs, help pull U.S. out of one of the worst recessions in generations.
* DOW ended at 7,552.6, remaining a hair above its Nov 20 closing low of 7,552.29. S&P 500 Slips below 800 for the first time in 3 months.
* General Motors and Chrysler said they need an additional $21.6 billion in federal loans between them because of worsening demand for their cars and trucks.
* A possible bout of deflation is now a key risk facing the economy says FED.
* Satyam has called back more than 1,500 overseas employees, attached to projects onsite.
