Comparing Crashes: This One's Worse Than ’87

With today’s further decline–as I write this, the Nasdaq Composite is down another 86 points, or 5.2 percent, to 1,559–the index has tumbled 45 percent since peaking at 2,859 last Halloween. I think we can all agree that a 45 percent decline qualifies as a market crash, can’t we?

In fact, this decline is actually worse than the roughly 36 percent decline on the Nasdaq from peak to trough in 1987, but not nearly so bad as the 78 percent nightmare from 5,048 on March 10, 2000 to 1,114 on Oct. 9, 2002.

Still, it is startling that the current crisis is now worse–considerably worse, in fact–than what happened in 1987. And we’re hardly out of the woods. Next week, earnings season begins in earnest, and it is not going to be pretty.

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »