WhiteLove
26th December 2015, 10:29
"On September 16, 2008, failures of massive financial institutions in the United States, due primarily to exposure of securities of packaged subprime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis resulting in a number of bank failures in Europe and sharp reductions in the value of stocks and commodities worldwide. The failure of banks in Iceland resulted in a devaluation of the Icelandic króna and threatened the government with bankruptcy. Iceland was able to secure an emergency loan from the International Monetary Fund in November. In the United States, 15 banks failed in 2008, while several others were rescued through government intervention or acquisitions by other banks. On October 11, 2008, the head of the International Monetary Fund (IMF) warned that the world financial system was teetering on the "brink of systemic meltdown."
Source (https://en.wikipedia.org/wiki/Stock_market_crash)
From the start of July 2008 to the middle of August 2008, both Dow Jones and Nasdaq were in a mode of recovery. But something remarkable took place on the currency market, a USDEUR trend shift as powerful as this:
USDEUR
2008-07-15: 0.6234
2008-10-28: 0.8013
Trading days: 75
Total advance during period: +28,5%
To put it into perspective, it was kind of a crash in the EUR currency, from the perspective that it fell 29% more than the Dow Jones index did on the same period. It's pretty interesting that a currency was much more volatile than the US stock market index during this period...
Source (https://en.wikipedia.org/wiki/Stock_market_crash)
From the start of July 2008 to the middle of August 2008, both Dow Jones and Nasdaq were in a mode of recovery. But something remarkable took place on the currency market, a USDEUR trend shift as powerful as this:
USDEUR
2008-07-15: 0.6234
2008-10-28: 0.8013
Trading days: 75
Total advance during period: +28,5%
To put it into perspective, it was kind of a crash in the EUR currency, from the perspective that it fell 29% more than the Dow Jones index did on the same period. It's pretty interesting that a currency was much more volatile than the US stock market index during this period...