Post AzQJmgRaQbeEa4aqGm by va2lam@mastodon.nz
(DIR) More posts by va2lam@mastodon.nz
(DIR) Post #AzPvxiDBnXeSLhaKRs by futurebird@sauropods.win
2025-10-21T00:38:08Z
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Question for those in NZ.I'm learning about the 1987 black monday crash of the NYSE and many other markets. I didn't know about the international fallout. While the US and UK markets rebounded in weeks NZ stocks lost like 50 percent and took a year to get back to normal. Anyone know why?Did this have an impact on life in NZ or was it kind of irrelevant?
(DIR) Post #AzPw2S831OEDutRNFg by futurebird@sauropods.win
2025-10-21T00:38:59Z
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I'm kind of wondering if anyone from NZ remembers this event ... maybe from when you were a kid.
(DIR) Post #AzPybdWkpkyjJPtxQG by stephen@microbe.vital.org.nz
2025-10-21T01:02:56.446112Z
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@futurebird yes, I remember it, I was 17.One thing that happened was that for a while some of our cities had many CBD lots where building halted, or where an old building was left derelict, or a building had been demolished but the replacement never started, because a really big property development company (Chase corporation) went under (others did too I think but Chase is what I remember). So there was a bit of urban blight as a consequence.The long-lasting legacy was a whole cohort of investors decided equities were too risky and they would only invest in residential property. This has a) starved our businesses of capital and b) ensured that out of all the Anglosphere property bubbles, ours is the very very worst. The effect of this bias to property cannot be overstated. We have incredibly pro-landlord policies that make renting humiliating, make it near impossible to have security of tenure, with all the social harm that implies. We have governments doing everything they can to keep house prices high and rising. And so home ownership is falling, young people are emigrating, public health and education levels are affected by families moving all the time, blah blah. It's a blight, and governments are scared to do anything about it because the oldies who still own their homes will vote them out if they do.We're literally only just getting over it now, just in time for the next big crash, probably.
(DIR) Post #AzQ1jXleQq9lczKbiK by rlstone4dems@mastodon.social
2025-10-21T01:42:46Z
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@futurebird This sounds like something I heard of. And on the other hand, I don’t recall knowing about this! But anyhow, according to Chatgpt: "The 1987 Black Monday crash was caused by a combination of factors that all hit at once:⚙️ Computerized trading (program trading):New automated systems sold huge amounts of stocks when prices fell, triggering a chain reaction that made the drop much worse.
(DIR) Post #AzQ1m1eCJJhMsT1pTc by rlstone4dems@mastodon.social
2025-10-21T01:43:13Z
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@futurebird 📈 Overvalued market:Stock prices had soared too high too fast — up about 40% in 1987 before the crash — so the market was due for a correction.💵 Rising interest rates:The Federal Reserve had been raising rates to fight inflation, which made investors worry that borrowing would get expensive and profits would shrink.
(DIR) Post #AzQ1nYlaex3jsuDZgm by rlstone4dems@mastodon.social
2025-10-21T01:43:29Z
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@futurebird 🌍 Global market panic:Selling spread across countries because financial markets were becoming more connected worldwide.😱 Fear and psychology:Once the crash started, panic took over — investors sold everything they could, and there were few buyers left to stop the fall.So, it wasn’t one single cause — it was a mix of tech-driven selling, overpriced stocks, interest rate worries, and mass panic all hitting on the same day.”
(DIR) Post #AzQ2TZX8COL4QQUJJg by RedRobyn@mastodon.nz
2025-10-21T01:51:02Z
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@futurebird Definitely remember, but I was a bit younger than Stephen. I'm not aware of any close family friends who were borrowing heavily to invest in what turned out to be junk shares, so insulated from that. Lots of yuppies git hard though. Everything he says about our property market, and lasting effects I feel pretty keenly. I do also wonder if the neoliberal policies also affected investing decisions: the best bets were property or formerly state owned assets (mostly monopolies). Why risk your money on companies trying to actually produce anything?
(DIR) Post #AzQ3Yj2cNO6hJcEjrc by zl2tod@mastodon.online
2025-10-21T02:03:08Z
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@futurebird The New Zealand economy was somewhat over-extended largely as the result of huge government debt incurred by the Think Big government.Think Big incurred vast debts to build large projects mainly in the petrochemical space, so when the market's crashed the debts could not be serviced.This led to a vast and hugely damaging sale of public assets at fire-sale prices, and very difficult economic times.We are still paying the price.
(DIR) Post #AzQJmgRaQbeEa4aqGm by va2lam@mastodon.nz
2025-10-21T05:04:57Z
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@futurebird lots of people who were in NZ at the time have answered that better than me. One thing I can notice as an outsider, though, is that it is true that many people don't seem to trust the stock market. But the NZ stock market is small and maybe not that diversified. Another thing is that most of the coverage of stock market investing in NZ is a bit behind the times and doesn't know about low cost index funds. Which do exist. But you have to know about them.
(DIR) Post #AzQKQaUdyK6Jhz3DVo by jackyan@mastodon.social
2025-10-21T05:12:12Z
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@futurebird I donʼt know the stats but it really hurt a lot of businesses in years to come. I watched them collapse after 1987 and well into 1992–3, big businesses first, little businesses last.
(DIR) Post #AzQLcmgOZqjywVvYTA by Iveyline@mastodon.social
2025-10-21T05:25:35Z
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@futurebird I was working in a sharebroking office in Auckland at the time. In my view there were several reasons:1. Too many cowboys listed IPOs that were essentially scams with wildly over-inflated projections and a lack of solid data e.g. a goat farm company and "Apple Fields" 2. Several high flying corporations such as Equity Corp and NZ Equities were "cooking their books" in several ways including by ramping up share values by internal trading without assets to back the increased values.
(DIR) Post #AzQg6kTlKjNRsXaGLw by futuresprog@mastodon.nzoss.nz
2025-10-21T09:15:08Z
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I was a kid at the time but later I’ve talked to the older generation including a family friend who recounted how he came home and said to his wife, pack your bags we’ve lost the house.Because the regulation was lacking people would mortgage their house to buy shares in the hopes that shares go up and they can repay the mortgage. It was all loans on top of dodgy loans and when it was unwound so many people were broke. This is why I support regulation.https://nzhistory.govt.nz/page/black-tuesday-share-market-crash@futurebird
(DIR) Post #AzQguULDbj0AJ7IzCa by zkarj@mastodon.nz
2025-10-21T09:24:07Z
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@futurebird @ErrolNZ all I can say is I started my first full time job on Monday 19th October and the next day the crash happened.
(DIR) Post #AzQmCo1XfMRQKqehea by futuresprog@mastodon.nzoss.nz
2025-10-21T10:20:53Z
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Here’s an example of a widely held and traded company in NZ that had issues with the crash. Delisted from NZX. Not a good person either.> At its peak about 150,000 New Zealanders were Brierley Investments shareholders.> In the 1980s Brierley Investments was a feared corporate raider in Australia and Britain, but the firm stumbled after the 1987 sharemarket crashhttps://en.wikipedia.org/wiki/Ron_Brierleyhttps://www.stuff.co.nz/business/industries/9549114/Remants-of-empire-fade-away@futurebird
(DIR) Post #AzRVswKzdrh6DgDdFg by worik@mastodon.social
2025-10-21T18:55:19Z
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@futurebird The NZ stock market is small both in capitalisation and participants. When it was smashed in 87 the vapor became very clear. Took longer to recover because it grew further beyond the underlying values, and the participants particularly crushed
(DIR) Post #AzRWCqsfdjr15TSx4C by worik@mastodon.social
2025-10-21T18:58:54Z
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@futurebird The impact on NZ life was dramatic, but over shadowed by the utterly devastating Employment Contracts Act and benefit cuts that slashed incomes and finished the trashing of the economy the simple minded policies of Labour started Many NZ communities were gutted by the Labour policies of privatising the central heights of the economy, before 87, according to some new economic theories that have since been shown to be inadequate