STORY 01📉
The 1929 Crash
In October 1929, US markets suffered several sharp declines. On October 28, the Dow Jones fell nearly 13%, and the crisis continued.
Key takeaway: Markets can change direction very quickly.
STORY 02⚫
Black Monday 1987
On October 19, 1987, the Dow Jones fell 22.6% in a single session, one of the largest one-day declines in its history.
Key takeaway: Liquidity and market mechanisms matter just as much as expectations.
STORY 03🇬🇧
Black Wednesday 1992
On September 16, 1992, the United Kingdom left the European Exchange Rate Mechanism after intense pressure on sterling. The Bank of England says the episode cost the UK Treasury more than £3 billion.
Key takeaway: Exchange rates are closely tied to monetary policy.
STORY 04🏦
The Barings Collapse
In 1995, trader Nick Leeson’s concealed positions caused Barings to lose £827 million. The Bank of England later highlighted serious control failures.
Key takeaway: Segregation of duties and controls are essential.
STORY 05🧮
LTCM and Leverage
In 1998, Long-Term Capital Management had about $30 in debt for every $1 of equity. After heavy losses, a consortium of banks provided $3.6 billion to prevent a disorderly liquidation.
Key takeaway: Leverage can magnify both gains and losses.
STORY 06🌏
The Asian Financial Crisis
The Asian financial crisis began in Thailand in 1997 before spreading to several East Asian economies.
Key takeaway: Financial markets are connected across borders.
STORY 07💻
The Dot-com Bubble
The late 1990s saw valuations of internet-related companies surge. The reversal in 2000 became one of the era’s major market corrections.
Key takeaway: A promising technology does not prevent valuations from becoming excessive.
STORY 08🏛️
The Panic of 1907
The financial panic of 1907 helped fuel debate about the need for a more structured way to support the US banking system.
Key takeaway: Some crises lead to lasting institutional change.
STORY 09📊
The 2010 Flash Crash
On May 6, 2010, US markets plunged at extraordinary speed: nearly 1,000 points were wiped off the Dow Jones before a partial recovery.
Key takeaway: The speed of electronic markets can amplify a move.
STORY 10🤖
Knight Capital
In August 2012, a software deployment error caused Knight Capital to send millions of erroneous orders. The company lost more than $460 million.
Key takeaway: In automated trading, a small technical flaw can have enormous consequences.
STORY 11₿
The Two Pizzas
In May 2010, a Bitcoin user paid 10,000 BTC for two pizzas. The transaction became one of the best-known stories in cryptocurrency history.
Key takeaway: An asset’s value also depends on how the market adopts it.
STORY 12🏦
The 2008 Shock
The 2007–2009 global financial crisis was marked by distress at major financial institutions, including Bear Stearns, Lehman Brothers and AIG.
Key takeaway: Financial risk can spread from one institution to another.
STORY 13🏠
Subprime Mortgages
Before the financial crisis, the expansion of risky home loans weakened the US financial system when housing market conditions turned.
Key takeaway: The quality of underlying assets remains fundamental.
STORY 14💶
The Swiss Franc Shock of 2015
On January 15, 2015, the Swiss National Bank removed the exchange rate floor of 1.20 francs per euro. The franc appreciated sharply immediately after the announcement.
Key takeaway: A central bank decision can trigger a sharp move in currency markets.
STORY 15🛢️
Oil Below Zero
In April 2020, the WTI oil futures contract expiring in May briefly traded at a negative price amid exceptional global demand conditions and storage constraints.
Key takeaway: A market price also depends on the contract’s technical features.
STORY 16🎮
GameStop in 2021
In early 2021, GameStop and other heavily shorted stocks saw extremely rapid price moves, alongside intense retail investor activity.
Key takeaway: Short positions and crowd dynamics can intensify volatility.
STORY 17🌍
Black Monday Was Global
The October 1987 crash was not limited to the United States: markets in several countries were hit hard.
Key takeaway: Modern markets react to international events.
STORY 18📈
The Dow Had Rallied Before 1987
Before Black Monday, the Dow Jones had gained about 44% in just seven months during 1987.
Key takeaway: A rapid rise can change how investors perceive risk.
STORY 19⚡
A Trillion Dollars in Minutes
During the May 2010 Flash Crash, nearly $1 trillion in market value disappeared within minutes before a partial recovery.
Key takeaway: A market’s total capitalization can change very quickly.
STORY 20🔢
Millions of Orders at Knight
During the Knight Capital incident, more than 4 million orders were sent in 45 minutes, while the system was initially processing only 212 customer orders.
Key takeaway: Automated systems must be monitored and controlled.
STORY 21💼
Knight’s Unintended Portfolio
During the 2012 incident, Knight accumulated several billion dollars in unwanted positions within a few dozen minutes.
Key takeaway: Risk control does not stop once an order is sent.
STORY 22🏦
LTCM Was No Small Operation
By the end of 1997, LTCM had increased its exposure to about $30 of debt for every dollar of equity.
Key takeaway: An apparently sophisticated strategy can become vulnerable when it relies heavily on debt.
STORY 23🇨🇭
The EUR/CHF Shock
After Switzerland’s January 15, 2015 announcement, the Swiss National Bank reported that the euro briefly fell to around 0.85 francs on the interbank market before quickly rebounding.
Key takeaway: Markets can react before investors have time to analyze the news.
STORY 24🏛️
The Fed and Liquidity
After the 1987 crash, the Federal Reserve played an important role by providing liquidity to the financial system.
Key takeaway: During periods of stress, liquidity becomes a central concern.
STORY 25📚
A Crisis Can Change the Rules
The 1987 crash helped prompt the adoption of mechanisms that can temporarily halt trading during extremely rapid moves.
Key takeaway: Crises can serve as a testing ground for new market rules.
STORY 26🌐
The Globalization of Markets
The events of 1987 showed how interconnected financial markets already were internationally.
Key takeaway: Local information can quickly become a global event.
STORY 27🧠
Risk Is Not Just on the Chart
The Barings story showed that major losses can remain hidden when internal controls and separation of responsibilities are inadequate.
Key takeaway: Risk management also depends on organizational controls.
STORY 28📉
Banks Can Amplify a Crisis
US banking panics in 1930–1931 turned a slowdown into a much deeper crisis.
Key takeaway: Trust is essential to the financial system.
STORY 29💡
Markets Tell Stories
From the 1929 crash to today’s electronic markets, history shows that prices reflect information, expectations, liquidity and human behavior.
Key takeaway: Understanding market history helps explain how markets react.
STORY 30🏦
‘Too Big to Fail’
The 1984 Continental Illinois crisis helped popularize the phrase “too big to fail” in US financial debate.
Key takeaway: An institution’s size can become a concern for the entire system.
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