Best/Worst Trade Fund League Tables Behavioral Finance List of Crises Synopses on Crises

Tulip Bubble: 1637

Bursting of tulip mania in the Netherlands – while tulip mania is popularly reported as an example of a financial crisis, and was a speculative bubble, modern scholarship holds that its broader economic impact was limited to negligible, and that it did not precipitate a financial crisis.

Was Tulipmania Irrational? (The Economist)
The Folly of Trading in Tulips (Uchicago)

South Sea Bubble: 1720

Bursting of South Sea Bubble (Great Britain) and Mississippi Bubble (France) – earliest of modern financial crises; in both cases the company assumed the national debt of the country (80–85% in Great Britain, 100% in France), and thereupon the bubble burst.

South Sea Bubble 1720 Project (Yale School of Management)
The South Sea Bubble of 1720—Repackaging Debt and the Current Reach for Yield (Liberty Street Economics)

New York Stock Exchange Crash: 1901

First stock market crash of the New York Stock Exchange, caused by conflict over financial control of the Northern Pacific Railway. Led to the creation of the Northern Securities Company and also ruined thousands of small investors.

The Panic of 1901 Part 1 (The History Box)
The Panic of 1901 Part 2 (The History Box)

New York Stock Exchange Crash: 1907

Triggered by failed attempt to corner stock on United Copper Company. Caused the collapse of the Knickerbocker Trust Company which in turn caused banks to withdraw money from reserves and people to withdraw money from banks.

The Panic of 1907: A Human-Caused Crisis, or a Thunderstorm? (Harvard University)

Wall Street Crash / Great Depression: 1929

Wall Street Crash of 1929, followed by the Great Depression: the largest economic depression in the 20th century. Lasted 10 years and affected all industrialized Western countries.

The Crash of 1929 & The Great Depression (PBS)
The Crash of 1929 (Time)
The Roaring Twenties Grind to a Halt and a New Era of Hard Times Begins (Chicago Tribune Company)

Oil Crisis: 1973-1974

1973 Oil Crisis: oil embargo posed by the Organization of Arab Petroleum Exporting Countries (OAPEC) caused the 1973–1974 stock market crash. Price of oil nearly quadrupled from the beginning to the end of the embargo.

Oil Embargo, 1973 – 1974 (US Office of the Historian)
1973-74 Oil Crisis (Berkeley)

Latin American Debt Crisis: 1980s

Latin American countries borrowed large sums of money from international creditors for industrialization. But their lower than expected earning power, high interest rates and debt issued under the rule of dictators exacerbated the economic stability and triggered debt crises.

The Debt Crisis: Lessons of the 1980s for the 1990s (Federal Reserve Bank)
The LDC Debt Crisis (FDIC)
External Debt and Macroeconomic Performance in Latin America and East Asia (Harvard University)

Israel Bank Shares Crisis: 1983

Stocks of four largest banks in Israel plummeted and banks were acquired by the public. Decrease in stock price was due to falsified reports and collusion between banks to buy each other’s’ stocks to give the appearance of high demand.

The 1983 Israel Bank Shares Crisis Revisited (Bank of Israel)

Black Monday: 1987

Stock markets around the world crashed, starting in Hong Kong, Europe then the United States. It was the largest one-day percentage decline for the Dow Jones Index.

The Crash of '87: Stocks Plummet 508 Amid Panicky Selling (WSJ)
25th Anniversary Black Monday 1987 Crash (Ritholtz)

Japanese Bubble Collapse: 1990

Japanese asset price bubble collapsed: from 1986 to 1991. The collapse in real estate and stock prices led to the start of the lost decade for Japanese economy as it was mired by disinflation and anemic economic growth.

The Asset Price Bubble in Japan in the 1980s (BIS Papers)
Take It From Japan: Bubbles Hurt (NYT)

Scandinavian Banking Crisis: 1990s

Early 1990s – Scandinavian banking crisis: The Swedish and Finnish banking crisis of 1990s led to restructuring of the banking industry. Mergers and acquisitions became prevalent, with many banks being nationalized.

Returns and Risks in Scandinavian Banks (Gothenburg School of Economics and Commercial Law)

Recession / SNL Crisis: 1990s

Early 1990s recession: Panic caused by collapse of the savings and loans industry led to recession, high unemployment rates for several years, and consequently large government budget deficits and bailouts.

The Not So Great Recession... (Forbes)
The 1990-91 Recession in Historical Perspective (Federal Reserve Bank of Boston)
Early 1990s Recession (UC Berkeley)

Black Wednesday / Attacks on European Currencies: 1992-1993

Black Wednesday: British conservative government forced the withdrawal of the pound from the European Exchange Rate Mechanism after they were unable to keep it above its agreed lower limit. The UK Treasury estimated the cost at 3.4B GBP.

Black Wednesday: The Day that Britain Went Over the Edge (The Telegraph)
Interpreting the ERM Crisis: Country-Specific and Systemic Issues (Princeton University)

Mexico Crisis: 1994-1995

Sudden devaluation of Mexican peso with depleted federal reserves led to economic crisis . U.S. intervention eventually stabilized the exchange rate at 6 pesos to 1 U.S. dollar and allowed Mexico’s economy to emerge in 1996.

The Mexican Peso Crisis (Federal Reserve Bank of Atlanta)
Mexico, 1994-1995 (The World Bank)
The Mexican Peso Crisis of 1994-1995 (San Jose State University)

Asian Financial Crisis: 1997-1998

The crisis started in Thailand after collapse of the Thai Baht and spread to other Asian countries including Indonesia, Malaysia and South Korea.

What Caused East Asia’s Financial Crisis? (Federal Reserve Bank of San Francisco)
Timeline of the 1997-98 Asian Financial Crisis (PBS)
The 1997-98 Asian Financial Crisis (CRS Report)

Russian Financial Crisis: 1998

1998 Russian financial crisis: Russian Government and Russian Central Bank devalued the ruble and defaulted on Russia’s debt, diminishing regional budgets and federal subsidies to agriculture sector.

Economic Report: The Russian Crisis 1998 (Rabobank)
A Case Study of a Currency Crisis: The Russian Default of 1998 (Federal Reserve Bank of St. Louis)
Financial Globalization and the Russian Crisis of 1998 (The World Bank)

Turkish Economic Crisis: 2000-2001

Turkey relied heavily on foreign investments for economic growth. Government grew massive budget deficits and turned to selling high-interest bonds to Turkish banks, which became the banks’ primary investments.

The Turkish 2000-01 banking crisis (Rabobank)
Behind 2000-01 Turkish Crisis: Stability, Credibility, and Governance, for Whom? (Bilkent University)

Argentine Great Depression: 1999-2002

Began after Russia and Brazil’s economic crises and deepened after the dot-com bubble burst. The crisis caused the economy to shrink by 28% and unemployment to spike.

Timeline: Argentina's Road to Ruin (The Washington Post)
Argentina's Economic Crisis: Causes and Cures (Join Economic Committee)
Lessons from the Crisis in Argentina (International Monetary Fund)

Dot-com Bubble / Recession: Early 2000-2003

Tech and telecom companies, which value had speculatively risen in the late 90’s, collapsed in March 2000 and continued to fall through to 2002 with many companies’ stock prices losing almost all of their value.

Goldman: This is the 3rd Wave of the Financial Crisis (Yahoo)
The 2001 Recession: How Was It Different and What Developments May Have Caused It? (Federal Reserve Bank of St. Louis)
What Kind of Recession was 2001? (The Economist)

Global Financial Crisis: 2007-2009

The crisis started as large number of Subprime home loans began to default. Home price plummeted and bad loans led to a full-scale decline in the solvency of financial institutions and shock to global economic activity resulting in panic selling of all asset classes across the world.

Latins Quiet About Madoff Losses (WSJ)
2009 CDO Meltdown (Scribd)
The Roots of the Mortgage Crisis (WSJ)

European Sovereign Debt Crisis: 2010

Europe’s recovery following the global financial crisis was already tepid, and in 2010, structural deficits reached significant level for “PIIGS” (Portugal, Ireland, Iceland, Greece and Spain) leading to requests for bailouts and restructurings.

Acropolis Now (The Economist)
News About the European Debt Crisis (NYT)
European Sovereign Debt Crisis: Overview, Analysis, and Timeline of Major Events (CFA Institute)