VELINO COMPANIES, 18 October 2007
About a year ago, I happened to bump into a special anniversary: the twentieth anniversary of the crisis on Wall Street that marked the end of Yuppismo 80s. I thought well of this article to repeat my "Fans". I remember that just a year ago exploded the crisis of subprime loans. Good reading.
Rome, Oct. 18 (Velino) - Just in the days when the Federal Reserve tries to find a solution to the crisis of subprime mortgages, October 19 this year falls on the anniversary of one of the largest stock market crisis of the 80s. That crisis began only six hours in knee Yuppie hundreds of Americans who had hoped the dream of easy wealth. In the hours longer and dramatic in its history, the New York Stock Exchange loses 500 billion dollars, around 600,000 billion lire at the time. This is the 22.6 per cent of total trade. In the space of three days, the loss expanded to all stock markets worldwide. The "Black Monday" is determined by the sudden withdrawal of capital from the stock exchange market on Wall Street. To lose is one quarter of American investors. And to think that at the beginning of the New York Stock Exchange had increased by 44 percent. But it was since 1982 that the U.S. stock market had begun to run from when the Republican administration had chosen the path of indebtedness of the state to revive economic growth. The powerful development stops suddenly between Wednesday 14 and Friday 16 October 1987. The U.S. stock market loses 10 points in the Dow Jones. The panic is felt immediately on the morning of Monday, October 19 when the shoeshine stipend remain for the entire morning without jobs. Operators do not have time. I am too busy to save the cabin. "Bad sign," said one, when a young banker before making the switch did not mention that time for a lucidatina. He adds puzzled: "When the stock market collapses, even the shoeshine collapse. It's hard for everyone, has immediate effects. " Inside the great "trade floor", the fellowship hall, is the pandemonium. The index of stock market falls in waves of 100 shots, half is already sitting under 250 points to 508 points, equivalent to 22.8 of the Dow Jones. On 28 and October 29 of 1929 the loss was respectively 12.8 and 11, 4 percent. The broker only receive orders to sell, people took to be a crazy fear. But the big fear lasts only two days. The economist John Kenneth Galbraith identified in this incident come a problem of preparation of financial operators of the fellowship of Wall Street: "There's too many people on the market with the idea of being able to spur the bull riding before falling back to the first saddle that collapsed to the ground. As in 1929, there were too many people who thought they had found the market a system to get rich without work or produce. I am not expecting such a high level of nervousness among investors on Wall Street. A case was their double fear: the collapse of the stock market and the drop in the dollar. " But the real investigation of the fall of the awards are the Yuppies young practitioners held that in those days saw the triumph of cinema with the release of Oliver Stone film entitled Wall Street, where films are the exploits told by young people climbing. In those days, back suicide savers. A Wisconsin farmer commits suicide, another makes a massacre in Florida and then kill. Change the ritual: in 1929 we threw himself from skyscrapers in 1987 will take a 44 Magnum and fire to themselves or to others. The defendant great, the "Yuppie" ( "Young urban professional") is a man or woman fresh graduate, which usually has a Masters in Business at one of the best American universities. It has between 25 and 35 years, is not married, lives in Manhattan nell'Upper East Side, in a small apartment (bedroom, living-room and services) but elegant and expensive. Usually belongs to the middle class or medium-high, good family, bourgeois habits. A graduate with good ratings, at the end of the first year of the course for the Masters, the recruiters of the most prestigious Wall Street companies have to hire for a summer month trial, paid 4000 U.S. dollars, led to dinner every night in the best restaurants and theater on Broadway, to give him an 'idea of what could be his future life. If you graduate with good ratings, is taken: the salary to their first job is around about 80,000 U.S. dollars (about 100 million pounds at current exchange rate) per year, not bad for a young man of 24 years, given that the average income of a family of 4 persons is 22,000 dollars a year. The crisis in October of 1987 will be recovered in the following days. But the collapse of Oct. 19, 1987 decreed the end of luxury consumption in the United States for these young rampanti that will reduce their dreams and fears adapt to the market. (pal) 18 Oct 2007 19:59