Question

What are some of the common features of the 2007-2009 stock market crash and previous market crashes, for example, Japan's in the 1990s or the internet bubble around the turn of the millennium?

Answer 1

Common features of the 2007-2009 stock market crash:

• This Market Crash is also known as Bear market of 2007-09
• This market has major impacts on some the largest indices including Dow Jones, S&P 500, Nikkei 225, FTSE 100 etc. which were declined by 20%-40%
• This Market crash has impacted all the stock markets across the Globe
• After the great depression that has occurred in 1930’s this crash has been considered the most frightening financial crisis
• At the end of October 2008 many employees lost their jobs, approx 240,000
• The Fed dropped the fed funds rate to zero, its lowest level in history.
• At the end of 2009 due , Obama's economic stimulus plan investors gained a confidence that they can survive in the stock market and can his policy can stabilize the worsen situation.