Name: How to Make Millions During This Recession 2021 - A brief History Of Stock Market Crashes
Uploaded: 2020-10-31T19:55:33.000Z
Duration: 10 min 55 s
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Every time it seems like we are out of a financial crisis, we face another.

Remember back in 2008 when the housing bubble burst, millions of people lost their jobs,

The European Union spent the next5 years trying to recover.

In fact, countries such as Greece just recently recovered from the 2008 crisis, and yet here

But if you watch our videos, you know that a crisis is an opportunity to build a fortune,

and we have taken a look into some of them in previous videos.

But to take advantage of a crisis, you need to be able to spot them before everyone else

does and get yourself ready, and that's what we will do in this video.

We will take a look at five greatest financial crises in modern history to understand why

they happened, How they happen, and How did we recover from them.

  The United States wasn't always such great

Back in the 19th, it was a country of turmoil.

The civil war almost destroyed the country, and its financial market wasn't working properly.

The US didn't even have a Central Bank to manage financial crises as many European countries

To understand the importance of the central bank, just imagine if the FED didn't exist

The only reason the stock market surged back is that the fed injected a ton of capital

into it, unemployment rose to an all-time high, but the fed gave the government the

If not for the fed, the current crises would have been much worse.

In 1906 one of the famous bankers wanted to make a fortune by pushing United Copper shares

to rise and force short sellers to buy his shares to exist their positions.

But his plan backfired as the short sellers found a different source to buy United copper

That move bankrupted the company and multiple other banks.

As the news of bankruptcy spread, depositors rushed to the banks to withdraw their savings.

As the banks run out of cash, they stopped lending money to their depositors and went

The stock market crashed to an all-time low.

There wasn't a central bank back then to restore depositor's faith in the banks, so the wall

He deposited a significant junk of his wealth into some of these banks to restore public

faith in the banking system and convinced other wealthy bankers to do the same, and

saved the economy from sliding into a crisis that god knows how long it would last.

The Internet has become such an important aspect of our lives that it's difficult to

imagine that 20 years ago, the Internet wasn't even a thing.

The 1990s were the golden era to start an online company: Amazon, Yahoo, PayPal, eBay,

google are were developed during that period.

The people who understood the extent of the Internet knew that the Internet is going to

Everyone wanted to take advantage out of this gold rush, so investors threw their money

at every company that had a dot com at the end of it's name.

Everyone knew that most of these companies aren't going to survive, but one success would

not only compensate for all the failures but would pay back enormously.

And that's happened; in just 25 years, Amazon went from nothing to a 1.7 trillion-dollar

But the overflow of cash into the tech companies pushed stock prices way higher than they worth.

Companies that barely knew what they were doing were valued at hundreds of millions

The Nasdaq index market rose by 400 percent in just five years (1995 to 2000).

By the mid 2000s the bubble began to burst, stocks of internet companies start to plummet.

By 2001, most internet companies had to declare bankruptcy.

The stock market had lost $5 trillion in market capitalization since the peak; the Nasdaq

It's often called the greatest financial crisis in the history of the United States because

it lasted ten years and crashed the entire economy.

The American leadership tried everything to save the economy, but nothing worked out.

Every solution proved to be ineffective in the face of such a crisis.

  When world war I broke up, the entire European

continent was at war but the war slowly spread to the rest of the world.

Everyone was eager to win, but unfortunately, supplies were limited, especially food.

So the allies turned to the United States for help since it wasn't directly affected

by the war and had the economic power to provide that, so the US became the only major supplier. 

Wars by no means are good, but it brought a period of economic prosperity to the United

If you were even a farmer, you could produce as much wheat as you can and sell at the highest

Even though the war has ended by 1918, the demand for American goods, especially wheat,

didn't fall because the entire world was still recovering.

  Farmers began taking huge loans to buy more

land and equipment to farm more wheat, which led the real estate prices to increase.

That pushed people to buy even more lands hoping to sell it later for a higher price.

The same thing was happening to every other industry.

Even foreign countries and companies started investing in the US.

Many companies were overpriced because of excessive demand.

In fact most of these investments were based on speculations.

Nonetheless, that didn't stop people from investing.

When Europe recovered, the demand for American goods, especially wheat fell, since other

The oversupply drove prices down And pushed the stock market to fall.

Everyone started selling their shares to cash out before the stock market plummets further.

 Since wheat prices started falling, farmers couldn't pay back their debts (to the bank),

so that pressured the banks since everyone was asking back for their deposits.

The panic has already spread to the entire country.

Banks couldn't pay their obligations and had to shut down one after another.

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How to Make Millions During This Recession 2021 - A brief History Of Stock Market Crashes

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depression

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