The stock crises in 1929 and 1987 have some similarities in their economic system. It brings to financial shakiness. But the degree, monetary policy and the consequences are very different. Well, these very questions will be the main points in our articles.
Talking about general factors concerning the appearance of two crises it is very essential not to forget one of the major factors that play one of the important roles – human one, or to be more concrete – psychological. Its impact on economical system is very strong, and that fact was introduced through many newspapers. They underlined that very psychological factor was not probably noticeable, the economists didn’t pay attention to it, but the prices were managed by that very human factor.
In order to get something new and to have the possibility to compare we should research the views of different representatives from that epoch. As for the year of 1929, well, John Kenneth Galbraith said that in the stocks there was an extreme speculation and Federal Reserve had to control the usage of the credits.
From another point of view, the specialists told that the process of price-investing selling was activated by the markets. But that action promoted the aggressive institutions to vend in anticipation of price changes.
In order to make a conclusion concerning the same lines of the crises in 1929 and the one of 1987 we should underline the next point: a number of same reasons, the major and more important was of course the changes in prices; but the changes also were present; they were connected with the consequences and the character of the governmental actions. And the most invisible but very powerful factor presented and in 1929 and in 1987 was of course the psychological, or in other words, human factor, which made a great sign in the history of two greatest stock crises.

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