"... On Black Monday, October 19, 1987, the Dow Jones Industrial Average fell 22.6%. What were the consequences of this collapse? By today’s standards, there weren’t any. The stock market fell. The same investment banks and funds that had been operating on Wall Street continued to operate. ..."
Junk bonds disappeared, Micheal Milken http://en.wikipedia.org/wiki/Michael_Milken got jailed, a lot of people lost money as entrepreneur king-pins went belly up. You could feel the recession in the late 80's, early 90's. Everything just shut down as discretionary spending stopped. The real difference b/w the 80's crash and is that while a lot of money for houses has been handed out with little due diligence, there is still an tangible asset that can be sold. I'm not so sure this was the case in the 80's crash. For Phil to say there wasn't any real effects indicates he was working in cashed up tech world ~ http://philip.greenspun.com/narcissism/resume
Ok, he kind of didn't really offer a comparison, did he? I infer that he's considering Black Monday a "worst case", and saying that the economy continued to function despite it. But it's not the worst case at all, is it? Are we too fixated on "black days", and not enough on "black years"?
Junk bonds disappeared, Micheal Milken http://en.wikipedia.org/wiki/Michael_Milken got jailed, a lot of people lost money as entrepreneur king-pins went belly up. You could feel the recession in the late 80's, early 90's. Everything just shut down as discretionary spending stopped. The real difference b/w the 80's crash and is that while a lot of money for houses has been handed out with little due diligence, there is still an tangible asset that can be sold. I'm not so sure this was the case in the 80's crash. For Phil to say there wasn't any real effects indicates he was working in cashed up tech world ~ http://philip.greenspun.com/narcissism/resume