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Crises of 1929 and 1987. NYSE and the Formation of Helpful Steps.

New York Stock Exchange, the famous stock market in the world had survived and was able to exist and to work until the crisis.

New York Stock Exchange, the famous stock market in the world had survived and was able to exist and to work until the crisis. Being 112 years old in the period of crash in 1929 it continued operating. The consequences of 1929 seemed to be useful and good enough. But in 1932, the stock point was low, 86% from pre-cash level. New York Stock Exchange had all possibilities to survive after the world crash, to establish its reputation and to recover the organization and to be ready for work in much more short time than other stock markets. Also, it is important to say about one more point during the process of crashes – this phenomenon was called as “bubble” effect. But probably someone doesn’t know the essence of it, or could make some wrong deductions. In order not to confuse here is example. The reason for it was, of course, price speculation. The sudden far above the ground position of price could turn to be in sudden near to the ground position. After a great leap a great depression follows. And between the difficulties absorbed in assessing the bases for depression none is more difficult then the responsibility to be charged to the stock crisis. Experts and now can’t decide this very problem. But they just say something just in order to say something. Well, that is the bubble principle which should be trounced. Also it is useful to underline the sets of actions made during the crises. Of course, the steps were not the same, may be thanks to the experience given for world. And if in 1929 the government was not ready for some quick reaction, in 1987 they were more concrete in its actions and more experienced.

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