Living In Historical Rhymes

Wow!  Just watched the October 16, 1987 Wall Street Week with Louis Rukeyser,which was the trading day eve (Friday night) before the Black Monday stock market crash.  Marty Zweig famously nailed it.

The show ends with this eerily familiar exchange between Rukeyser and economist, Alan Sinai.

25:30

LOUIS RUKEYSER:  Is the answer to get tough with our trading partners as people suggest?

ALAN SINAI:  Oh, I think some of that will be tried.

LOUIS RUKEYSER:  Will it be successful?

ALAN SINAI:  Part of our problem today is a crisis in confidence because in Washington we are having trouble, and we’re having trouble dealing with our trading partners. 

 

Gulp!  Remember to panic before everyone else.

Seat Belts_Mar24

 

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7 Responses to Living In Historical Rhymes

  1. Robbins D Harper says:

    1987

    Robbins D. Harper

    1217 Evergreen Point Rd.

    Medina, WA 98039

    c: 206.920.3938

    r.d.harper@comcast.net

  2. patrick says:

    Marty was right, as usual, even gave a shout out to 1962. Peeps at the time remembered his crash comments but not the fast recovery part. As a result most missed the incredible bull that ran all the way to 2000. I still have friends who have not gotten back in since 1987.

    • macromon says:

      Thanks, Patrick. I caught that. I remember watching this live as a young grad student. I was teaching a econ course at George Mason at the time and warned my students about the markets since the start of the semester. Always loved Marty and caught his shout out to 1962. We have two analogs for this market 1962 and 1987. Not so certain we can recover as quickly but the financial industrial complex is very powerful and we will get a yuge bounce.

      • patrick says:

        While you were a grad student I was a Commodity broker at EF Hutton in SF using an old S&P 50 chart…there was such an index chart…as my analogue that had me short. Sadly, I gave most of it back selling into the rallies over the next 1 1/2 years as the market went to new highs. I was convinced by the historical record that a recession had too be looming. That’s why I always remember Marty’s comments that I didn’t listen to.

  3. macromon says:

    Patrick, Are you still on the West Coast?

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