Black Monday

Historical Significance and Background

The year 1987 coincided with a period of global economic uncertainties. While the effects of the Cold War were still being felt, financial markets were experiencing fluctuations. In this context, October 19, 1987, became known as Black Monday, a day when stock markets worldwide experienced a collapse.

Development of the Event

Market Collapse

On October 19, 1987, stock markets worldwide suffered a significant loss in value. The FTSE 100 Index experienced one of its largest single-day declines in history (10.8%).

Panic and Selling

Investors began selling their stocks in panic, triggering even greater declines. These sales led to historical lows in the indices.

Central Banks' Intervention

Central banks started taking measures to intervene in the markets and maintain stability. Interest rates were lowered, and liquidity policies were put into action.

Outcomes and Effects

In the short term, investors suffered significant losses and market distrust increased. In the long term, financial regulations and oversight were strengthened. Socially, economic uncertainties affected societies and led to political changes.

Historical Significance and Contemporary Reflections

Black Monday serves as an example of how sudden collapses in financial markets can lead to serious consequences. Lessons learned from such events have led to the development of risk management and crisis prevention strategies. Black Monday is considered a significant turning point in economic history.