Why did the US stock market chrash a few weeks ago?

I was wondering and my American History teacher friend was not sure.

 

I think it had something to do with the inflation of the Wan, and the rise or crash of the Asian stock market. I a not sure, though.

 

yeah, im pretty sure its because the Chinese stock market fell a lot

 

Not chinese, whole asain. I am sure of that... the deflation of the Wan.

 

cos it went too fast again when it was running around Peter Griffin's old mansion.

 

lmao

 

the decrese in asian markets

 

It wasn't really a crash. The Asian stock market, the Shanghai market in particular, only dropped 9%.

 

That is a huge drop for those kind of things.
Okay, I did some research and this is what I found.

"Shenzhen/Shanghai Index of 300 stocks fell 9.2% last Tuesday. Why? Because the State Council, China’s highest ruling body, said it started a special task force to clamp down on illegal share offerings and other banned activities. Investors were worried that the government’s zeal could damage the whole stock market.
There’s no question that 9.2% is a big single-day drop. However, just looking at that one day doesn’t tell the whole story. In the previous six days, the same index had jumped 13%. That means that, despite the big drop, the index was still up 3.8% in seven trading days. I’d hardly call that a disaster. Regardless, a parade of market watchers has been bad-mouthing Chinese stocks, blaming them for the Dow’s plunge, and more."

"It’s not just U.S. and European markets that fell in the wake of China’s big sell-off. Singapore, Tokyo, India, Taiwan, Malaysia, Indonesia, and South Korea have also suffered. I believe this is an unwarranted knee-jerk reaction. But it’s also a good thing for longer-term investors. There are dozens of Asian blue chip stocks that have now come back down to levels that look pretty darn appealing to me."

From the site http://china.seekingalpha.com/article/28873

 

Yeah... I lost over $300 in my mutual funds because of that crash :/

 

yeah.. my father has been complaining about it

i think he said something about the shanghai market going up sharply, as once chinese new year came, everyone was in the mood for buying shares. (signifies prosperity?)

and then suddenly a negative day came, and that triggered off HUGE down days

 

Its not a crash, its called a correction.

Its what happens when the market rises too fast and large hedge fund investors (people that have billions in the market) got nervous and take profits all at once. 8)

(My dad works the stock market)

 

Don't markets have a mechanism to stop mass pull outs now?

 

It's not a vegetable, it's called a herb.

w/e you want to call it.

 

well, the price is back up now. but i think its gonna go back down in a few days time. greedy investors

 

Herbs and Vegetables are completely different things. Rosemary is a Herb, whereas Corn Is A Vegetable.... :roll:

Also Wrong, a Crash is what happens after a correction when people pull their money out of banks and the economy goes into recession.

And yes Ubor they do have mechanisms to do that, just as traders have algorithmic programs to automatically trade based on patterns for them :lol:

 

Traders just want money. :lol:

 

Its the grease that makes the world turn

 

Well of course, everyone wants money

 

the neopets economy is similar to real life stock market.

example, shooting star muffins from advent, eveeyone thinks theyre so good to hoard, everyone buys, price goes up --> price crashes.
all because of greediness for money