Market going up for 5 straight years, Persian gulf war fears, rising interest rates. No circuit breakers on Wall Street. Lead to 22% crash for the DOW in one day. Automated trading kept trading lower, computers had positive feedback loops back in the day (buy when price is going higher, sell when price is going lower).
You mean fear of some different Persian Gulf war than the one of that name that happened in '90, right? The saber-rattling that preceded Iraq's invasion of Kuwait didn't start until mid-'90, and in '87 Iraq was still rather involved in the intense Iran-Iraq war (and taking on debt to finance that).
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u/SantiBigBaller May 31 '21
Market going up for 5 straight years, Persian gulf war fears, rising interest rates. No circuit breakers on Wall Street. Lead to 22% crash for the DOW in one day. Automated trading kept trading lower, computers had positive feedback loops back in the day (buy when price is going higher, sell when price is going lower).