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Showing posts from February 7, 2018

The Film Archives: Joe Nocera & Diana Henriques- The Stock Market Crash of 1987: Worst Day in Wall Street History

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Source: This piece was originally posted at FRS Daily View Plus

Similar to what happened with the Stock Market last Friday and this Monday, is that we had a major downturn of the market or in 1987’s case a crash when the basic fundamentals of the economy were strong. Not counting the high budget deficit and national debt. But with solid economic and job growth, low unemployment, and even seeing wages ramong middle class Americans going up. Before the 1929 Wall Street crash the economy was fairly strong as well and then the crash happened and shortly after that we’re not only in a recession but the Greatest Depression and the economy hasn’t been worst since even with the Great Recession.

I believe as an non-economist that 1987 is where we see the negative consequences of what’s called Reaganomics. The theory being that you can cut taxes deeply and increase government spending dramatically and that somehow the new economic growth will pay for those new priorities. But the opposite actu…