In recognition of the 25th anniversary of the 1987 stock market crash, this article caught my eye. For those to young to remember – the stock market lost over 20% in one day. However for the full year the Dow Jones ended positive. To me this article brought light to the big problem then – and now. Too few people making decisions with too much monetary power.
We face the same problems today – if a small group of bankers of fund managers decide the markets going to turn, they get out at once – and the market gets hammered. I agree with many that the market is too liquid – and that we need to discuss some sort of trading tax to reduce market swings caused by excessive speculation:
Perhaps we need another market crash to raise awareness and build political will to reign in on this.