The Crash of 1987
Lecture no. 48 from the course: Crashes and Crises: Lessons from a History of Financial Disasters
Taught by Professor Connel Fullenkamp | 07 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Meet a modern-day Frankenstein’s monster, a human creation on the loose— in this case, computerized trading. Discover how the rage for portfolio insurance controlled by computer algorithms, combined with a rapidly rising market and skittish investors, sparked the Black Monday crash of October 19, 1987, during which the Dow Jones index lost 23 percent of its value.