This list of Topyaps examines some major bailout of banks, the collapse of economic institutions as well as major downswings of stock markets around the world.
1. Worldwide stock market crash in September 2008
A systematic meltdown which originated in the United States and flexed into a major crisis, reducing the values of commodities and equities worldwide. According to the International Monetary Fund, the prime cause of this crisis was that investors had become habitual to purchase stocks based on the principle of ‘On Margin’, a scheme by which they pay up only a part of the price of their stock purchase. After realizing the skyrocketing price of stocks, they paid a big amount to their corresponding brokers but surprisingly the stock didn’t rise in price which resulted in the crisis of confidence in the entire financial system worldwide.
2. 2001 Dot Com crash
Shoot up by the rise of the Internet industry in 1995, this dot-com bubble busted numerically in 2001 due to their daring and unusual business methodologies with the desire of overshadowing the stock market as well as with the strategy of get-rich-quick. The illusive growth of the tech sector with a bunch of companies being founded weekly collapsed on account of their borderline monopolies. Meanwhile, Silicon Valley became the Mecca of tech industry but it also generated some high profile court cases against tech companies, sending the shock waves to NASDAQ composite index.
3. 1997 Asian financial crisis
Sprang up in Thailand, this economic meltdown was a consequence of overbuilding in real estate which struck the major financial players across the world. Effectively, Thailand went bankrupt due to the collapse of its currency, Thai baht, which severely troubled the financial sector of the Asian economy. Fiscal deregulation boosted more loans and by the time the interest rates were increased by the United States in order to reduce inflationary pressures. When cash flow dried up in the east it became difficult for the Asian countries to keep exchange rates at their frozen floor against the USD.
4. Japanese financial crisis during the 1990s
A very lengthy and very costly economic breakdown which led to a lost-decade of Japanese financial infrastructure. Provoking the cross-border financial crisis, this disaster was generated because of declining asset value and higher interest rates along with helpless Japanese monetary authorities. On arrival of this crisis, banks were advocated to keep on lending to firms, despite they were on the verge of bankruptcy. This crisis generated an extended recession in Japan which was colligated with the excess liquidity during late 1980 in the Japanese financial system.
5. Economic breakdown during the 1970s
Considered as one of the most haunting decades for industrialized countries, this economic breakdown was the result of high inflation. The economic growth rate dropped vertically which was followed by the oil crisis of 1973, erupted from the unsatisfied members of Organization of Arab Petrol Exporting Countries due to some policies of the United States and increasing the posted price of oil to $5.11/barrel.
6. The market meltdown of the early 1930s
Also known as the Great Depression or the Deepest Depression of 20th Century, this worldwide economic breakdown is the perfect illustration of how far the world’s economy can decline. Started around September 4, 1929, in the United States, this crisis rapidly spread across the world. The entire game started when on “Black Tuesday”, the stock market of the United States came down drastically and severely damaged the countries importantly dependent on foreign trade.
7. Economical terror of 1857
A horrible outcome of the overexpansion in the domestic economy of the United States. This downward spiral erupted from the American banks after the bankruptcy of Ohio Life Insurance and Trust Company. This short-lived but intense depression ravaged the railroad industry which aroused merchants and farmers to withdraw their plan of investing in the markets. This economic breakdown until the American civil war and impacted adversely on Far East, Europe, and South America.
8. The financial panic of 1837
An imaginary fever which started in New York on May 10, 1837, when acceptance of cash was strictly denied by the American banks and they demanded the payments in the form of gold or silver. Further, this crisis was provoked due to the mutual conflict between contemporary president Andrew Jackson and the National Bank of America.
9. The economic breakdown of 1819
An unforeseen beckon of widespread urban unemployment, the closing of mortgages, banking failures and and dramatic downfall in agricultural prices, this economic breakdown is regarded as the stimulator of America’s endless cycle of boom-to-bust policy. This breakdown took place on the end of the Era of The Good Feelings as a result of the War of 1812.
10. The great depression of 1807
In order to take revenge from the British, the then president of United States, Thomas Jefferson introduced the Embargo Act but it devastated the American export economy and finally resulted in the war of 1812. This act rammed the shipping related industries (hugely dependent on Britain) which reduced the security prices along with trade volumes and commodity prices.