What Can We Do To Bring The Country Back Together? Message Board

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Pastimes : What Can We Do To Bring The Country Back Together?

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To: ILCUL8R who wrote (24)	12/13/2000 4:15:12 PM
From: chomolungma	Read Replies (2) of 181

My recollection is that the crash partly was precipitated by some structural problems with exchange rates with currencies, and that Baker was seen as an amateur in a high place. The info I read once laid much of the blame for the crash on Baker. Well, I've been around the markets since the 70's and I can tell you that I've never heard that exchange rates and currencies had anything to do with the 87 crash. And I don't ever remember hearing that Baker had a thing to do with it. The 87 crash was, IMO, the result of interest rates that were rising all through 87 and a market that was going up too. There was also a little thing they called "portfolio insurance" that was all the rage. These were essentially stop loss orders that were in place to "insure" against a decline in the market. These orders were in the S&P Futures market and touched off a cycle of futures leading to computer selling that fed on itself.

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