Crashes and Crises: Lessons from a History of Financial Disasters. Episode 13, The Crash of 1987

Summary

Meet a modern-day Frankenstein's monster, a human creation on the loose - in this case, computerized trading. Discover how the rage for portfolio insurance controlled by computer algorithms, combin...

Meet a modern-day Frankenstein's monster, a human creation on the loose - in this case, computerized trading. Discover how the rage for portfolio insurance controlled by computer algorithms, combined with a rapidly rising market and skittish investors, sparked the Black Monday crash of October 19, 1987, during which the Dow Jones index lost 23 percent of its value.

Show More