2006-10-05 02:10:07 · 3 answers · asked by 055589 1 in Business & Finance ➔ Other - Business & Finance
The Fed did not intervene back then. Now the Fed intervenes almost every day, especially in crisis situations pumping liquidity and cash reserves into the market.
You could trade with only 5% margin back then, and there was no Up-tick rule on shorting. Maybe shorting was a problem then, but probably more than that, it was the margin calls from long positions that made people sell. With stocks, people don't use margin so much.
The market was extremely overextended from the Roaring Twenties, and unrestrained (more like the year 1987, or 2000). That is not the case today.
2006-10-05 04:36:15 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
Buying on margin was a lot easier back then so you could make either huge profits or huge losses depending on how the market went. There were also no collars to stop a stock from falling too much in one session. Now there are. Today, we also benefit from the knowledge that such crashes can happen. Back then, we were less aware.
2006-10-05 09:13:08 · answer #2 · answered by Brand X 6 · 0⤊ 0⤋
a huge diff is computers....
2006-10-05 09:17:25 · answer #3 · answered by ET 3 · 0⤊ 0⤋