marktcrashes

Marktcrashes, or market crashes, are rapid and substantial declines in asset prices within a financial market, most commonly equities. A crash denotes a sudden, broad-based loss of confidence that leads to a steep fall in prices over a short period, typically days or weeks, rather than a gradual retreat during a longer downturn. Crashes are characterized by widespread selling, high volatility, and liquidity stress.

Causes include overvaluation and speculative bubbles, excessive leverage, liquidity shortages, and unexpected macro or geopolitical shocks. The presence of automated trading, risk controls, and interlinked financial institutions can amplify losses as distress spreads across markets and borders.

Prominent episodes include the 1929 stock market crash (Black Tuesday, October 29, 1929), the 1987 crash (Black Monday, October 19, 1987) when the Dow Jones fell about 22% in a day, the dot-com bust of 2000–2002, and the 2007–2008 global financial crisis. The March 2020 market crash during the COVID-19 pandemic also marked a rapid global decline.

Impacts include significant wealth losses, shifts in consumer and business confidence, and disruptions to credit and investment. Policy responses often involve circuit breakers, monetary easing, and fiscal support to stabilize markets and economies. Crashes differ from prolonged bear markets in speed and breadth, and their effects on markets and policy remain central topics in financial history. The term is widely used in both English and German-language discourse as marktcrashes.