Major crashes in modern history

Here is a list of some major financial crashes and economic crises in history:

Tulip Mania (1637): The first speculative bubble of modern history involved tulips. This crisis occurred in the Dutch Republic when the price of tulip bulbs reached absurd levels before suddenly crashing, leading to significant financial losses.

South Sea Bubble (1720): The South Sea Company, which had a government monopoly on trade with South America, experienced a speculative bubble in its stock price, followed by a major crash, causing widespread financial ruin in England.

Panic of 1837: A severe financial crisis in the United States triggered by the collapse of speculative land and commodity prices, leading to bank failures and an economic depression.

Panic of 1873 (Long Depression): A global financial crisis that began with the failure of Jay Cooke & Company and led to a prolonged economic depression in Europe and the United States.

1882: French crash
The French economy suffered its worst crisis of the 19th century following the collapse of the share price of Union Generale Bank in January 1882 which caused the Paris and Lyon stock exchanges to crash.

The Wall Street Crash of 1929 (Great Depression): The most famous stock market crash in U.S. history, also known as “Black Thursday”, marked the beginning of the Great Depression, a decade-long economic downturn.

Black Monday (1987): On October 19, 1987, global stock markets, including the Dow Jones Industrial Average, experienced a massive crash, with the Dow plummeting by more than 22% in a single day.

Asian Financial Crisis (1997-1998): A series of currency devaluations and financial collapses in several Asian countries, including Thailand, Indonesia, and South Korea, leading to a regional economic crisis.

1998: Russian crash
In August 1998, the rouble collapsed due to speculation linked to falling oil prices and the ripple effect of the 1997 Asian economic crisis.
Moscow declared a 90-day moratorium on the payment of its foreign debt and could not borrow money on international markets for over a decade.

Dot-com Bubble (2000): The bursting of the dot-com bubble, characterized by the sharp decline in the stock prices of many internet-related companies, leading to a recession in the early 2000s.

Global Financial Crisis (2007-2008): Also known as the Great Recession, this crisis was triggered by the collapse of Lehman Brothers and was characterized by a housing market crash, bank failures, and a severe worldwide economic downturn.

European Debt Crisis (2010-2012): A crisis that primarily affected several Eurozone countries, including Greece, Portugal, Ireland, Spain, and Italy, due to high levels of sovereign debt and financial instability.

Flash Crash (2010): On May 6, 2010, U.S. stock markets experienced a rapid and severe drop in prices, followed by a quick recovery, which was attributed to algorithmic trading and high-frequency trading.

COVID-19 Pandemic Recession (2020): The global economic downturn caused by the COVID-19 pandemic, resulting in widespread business closures, unemployment, and government interventions to stabilize economies.

These are just a few of the major financial crashes and crises that have occurred throughout our modern history. Each had its unique causes and consequences, but they all played significant roles in shaping economic and financial systems.

Sven Franssen