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What specific factors caused the US stock market to crash?



An Anonymous User asked:




I know a few things that causes a stock market to crash (thanks to those who answered my previous question :D ). Now all I need to know is what exactly made it crash so that I can apply it to my design accurately. Thanks for the help guys : )

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No Responses to “What specific factors caused the US stock market to crash?”
  1. Fibrosa says:

    Fear, mainly. At the time no one knew which banks to trust – which would fail (lehman brothers) and which would survive. No one knew which banks were caught up in CDS, CODS, etc so people withdrew their money in mass.

    This triggered a fall in share price, which then triggered margin calls – the margin calls took even more liquidity out of the market and the cycle continued.

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