You might think that the more things change the more they stay the same on Wall Street. Twenty years after the crash of 1987, the market is at or near a record high on any given day. Such was also the case in 1997 on the the 10-year anniversary of the crash, which abruptly and briefly interrupted the greatest bull market in history.
Looking back on 1987 in 1997, it all seemed a bit mystifying. The Dow had basically jumped five-fold from its close on October 19, 1987. The Go-Go 80s had been replaced by a Go-Go 90s. Wages and employment were on the rise, the housing market was booming and the great American consumer was driving the economy. In '97, the Dow Industrials were aat 8000 and the bull market wasentering its 15th year
Much like we are today, CNBC in 1997 -- naturally enough -- took an indepth look at the crash of 1987 and how it compared with current times. CNBC anchors Bill Griffeth, Sue Herera and Ron Insana -- all of whom covered the crash for FNN before later moving to CNBC after its launch in 1989 -- had a unique perspective to share in the special report "The Crash of ’87: Will It Happen Again", which originally aired on the network.
For market mavens, gurus and geeks alike, we 've decided to bring the program to the Web.
Part I -- Go-Go '80s
The program takes a look back at some of the defining characters and moments of the booming 1980s, from real-life arb Ivan Boesky, who was convicted of insider trading, to the Hollywood-creation Gordon Gecko, who uttered the famous words, "Greed, for lack of a better word, is good," in the film "Wall Street".
By 1987, the young bull market of the 1980s had turned into a seemingly unstoppable creature, which took stocks to record high after record high in a dizzying ascent that peaked in August.
After an unventful September, October reminded investors that it was the cruelest month. The market declined for two weeks, culminating in the crash on the 19th.
As one Wall Street said of Black Monday: "In the final hour every got the sense that the gate was closing, so every rushed for that gate."