Y2k Vs. Stock Market Crash Essay, Research Paper
The stock market clang of 1929 and the twelvemonth 2000 bug are really similar. Black Thursday was non one of the brightest yearss in American History. This twenty-four hours was the cause of a state downward spiral that closed 4000 Bankss, get downing the great depression, and taking to stock that at one clip would diminish 89 % to the value some had bought.
The cause of the stock market clang was mostly due to over investing. The job was people who didn Ts have the resources, puting from recognition to purchase into the ephemeral age of wealth. Many people now are puting informations in computing machines that is unreplaceable. They leave the information at that place presuming it will be at that place the following twenty-four hours or whenever they need it. In an age of information this might non be a wise thought. Peoples are purchasing information on border. They buy easy interfaces like Turbo Tax and Windows 98 that come to a computing machine user with about no accomplishment. The information is invested by these Computer Dummies. It is the premise that the informations will be safe that will ache computing machine users worldwide. It will go on sooner or later which is what people in 1929 knew about the stock-market clang.
Many believe the most logical day of the month for this information clang is January 1st, 2000. Many know about it and the possible infections the Year 2000 bug could do to our every twenty-four hours life. Little is being done to work out this job, sing it s freak. One might believe
that in the twelvemonth 2000 mayhem will be spread and a depression will happen because of this bug. Another theory is that we will finally run out of topographic points to hive away informations. Another day of the month for an eventual dislocation would be February 29th, 2000 because most century old ages are non leap old ages.
Many people have created ways to salvage the stock market and Bankss from another fiscal dislocation, nevertheless computing machine coders have non invented a manner to halt a monolithic information dislocation. The biggest job is that the breakdown won t occur over a few yearss, like the Black Thursday through Black Tuesday did, it will happen over seconds.
On Black Thursday 12,894,650 portions of stock were sold. On Monday Oct. 28th, 1929 9,250,000 portions were sold. On Black Tuesday 16,410,030 portions were sold. These three yearss added up to over $ 26 billion dollars of harm to the economic system, and by the terminal of the month $ 100 billion dollars. This might look like a batch but when a information clang comes the harm that will be done will be far worse. The ground for the immense strength is because the information clang will be world-wide alternatively of in merely one state.
Business now is international and even a clang in another state hurts the U.S. Imagine the graduated table of harm when all the states crash. So while concern might be conducted in wholly different ways now than it did in 1929 the same kinds of calamities will still happen faster and larger than they did earlier.