New DelhiMarkets around the world were normal that morning, but by afternoon the situation worsened to such an extent that people were shocked, History named this day as Black Monday, The largest single day stock market crash in world history, Dow Jones fell 22,6 percent, Hong Kong fell 45 percent, Australia fell 41 percent and Britain fell 26 percent, There was such an outcry in Bombay too that people felt as if the whole world was drowning,
This crash was real, but many such stories were born in between, some of which were true and some people added it with time. The real fun is in this spice. Today let’s relive that Black Monday, weighing real and fiction equally.
1. The investor who disappeared with $44 million
This story is one of the most famous legends of Black Monday. There are several versions of the real story, although no one knows the names. In the morning a big investor in New York called the broker and asked for his portfolio. The reply came that there were 42 million dollars in the account. When I called again in the afternoon, the broker’s voice was trembling. The market had fallen so much that the same investor now had a debt of two million dollars. That means $44 million wiped out in six hours. As dramatic as this story seems, it also describes the reality of Black Monday.
2. Hong Kong lock
Another incident whose figures still sting the same. As the market fell 45 percent, the Hong Kong Stock Exchange said there would be no more trading. The entire exchange was closed for four days. When it reopened, the market again fell 33 percent. Seventy percent was destroyed in smoke within a week. This decline is still a record and seeing this it is clear that Black Monday was not just America’s story, it was a fear of the whole world.
3. Chaiwala of Dalal Street
This story also became very famous in those days. It cannot be said exactly how much truth there is in this. But every market person reading this cannot live without smiling. The story is like this – In Bombay, people were sitting holding their heads for their portfolio. Everyone’s faces had fallen. A tea seller was standing at the shop smiling. Someone asked why are you so happy when everyone’s money has been lost. The tea seller replied that even today his tea is being sold for fifty paise, hence he is the richest today. This story may or may not be real, but the philosophy in it seems to be true in every fall of the market.
4. India’s first xenophobia
This was indeed the effect of Black Monday. Till then India believed that the US market had no significant impact here. But as soon as America fell, Bombay also fell. The next day the newspapers wrote that if America sneezes, Bombay gets pneumonia. This was the time when for the first time the discussion about the impact of foreign money in India increased. This part is completely real history.
5. 18 words that brought relief to the world
This part is 100 percent real and is considered one of the most memorable lines on the market. The next day, new Fed Chairman Alan Greenspan spoke for the first time. He said just one line that the Federal Reserve is ready to provide necessary liquidity to the market. These 18 words gave relief to investors around the world and stability gradually returned to the market. This line is now repeated in every crash.
6. Regret and reward
This part is completely based on real data. Those who ran away selling everything out of fear during Black Monday remained regretful for a long time. After just two years, Dow Jones had gone above its old level. In the next thirty years, the market gave such returns that those who showed courage that day became millionaires and billionaires. This is the truth of history that selling in fear is the most expensive deal.
the world goes on
Black Monday taught the world a lot. No matter how much the market falls, the world does not end. If the world’s billionaires can become poor that day, then a tea seller can feel rich. The difference is only in attitude and courage.
