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 M¢25  Funded By Mahalo ? |  July 21, 2009 01:56 PM

Why do markets crash?

What causes group consensus to become unanimous?

Why do complex adaptive system sometimes reach critical turnpoints and crash?
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Best Answer  Chosen by Asker

 
July 21, 2009 02:44 PM
Back in 1934, Benjamin Graham -- the father, grandfather, founder, and creator of securities analysis -- wrote that there are three forces behind a market crash.

The manipulation of stocks.
The lending of money to buy stocks.
Excessive optimism.
Source(s):
http://www.fool.com/investing/general/2008/02/21/the-3-forces-behind-a-mark...

Asker's Rating:
• What was the critical factor that caused the crash of 1929, 1964, 1987, 1994, and 2006?

Did a small group of investors/hedge funds start the slide?


Helpful Answer?  (0)   (0)    Tip mmecca for this answer
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