After today's drama, most folks are probably prepared to ride the new bull market back to Dow 20,000. My view is that days like today are just blips, and that when the bear market really does end, it will do so – – paradoxically – – in some cataclysmic way.
One Sloper took the time to put together an interesting table showing how various crashes led to subsequent wars. No one wishes for war (and I certainly don't; we've got two on our hands already, and those aren't exactly going very well), but if history is a guide, financial troubles usually lead to political ones as well.
|
Market Crashes |
|
War |
||
|
Name |
Year |
|
Name |
Year |
|
Tulip Bubble^ |
1637 |
—> |
First Dutch War^ |
1652 |
|
Bengal Bubble* |
1769 |
—> |
American Revolution* |
1175 |
|
Panic of |
1796 |
—> |
Franco-American |
1798 |
|
Panic of |
1857 |
—> |
US Civil |
1861 |
|
Long Depression* |
1873 |
—> |
Boer Wars, Anglo-Zulu War* |
1879 |
|
Panic of |
1893/1896 |
—> |
Spanish American |
1898 |
|
Panic of |
1907 |
—> |
WWI |
1914 |
|
Great Depression |
1929/1937 |
—> |
WWII |
1939 |
|
Recession of |
1973 |
—> |
Engaged in Vietnam |
1965-1973 |
|
Black Monday |
1987 |
—> |
No war |
— |
|
Dot-Com |
2000 |
—> |
War on Terror |
2001 |
|
Great Recession |
2008 |
—> |
? |
|
|
|
|
|
|
|
|
^ – Occurred in the Netherlands/involved the Netherlands |
|
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|
* – Occurred in England/involved England |
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