If you were going to try and cause a stock market “crash” how do you think youd do it?

jaques_de_moley: If you were going to try and cause a stock market “crash” how do you think youd do it?

Answers and Views:

Answer by Sergio
It’d be hard. I doubt you have a lot of money (billions), but if you did, you could buy loads of stocks (slowly over time), and then sell it all at once! (You might lose money from doing that, though). Anyway, if you are influential enough in the media, you could make up some negative news that would cause everybody to sell (good luck with that). Since markets are efficient, I doubt you will be able to cause the markets to “crash.”

Answer by Adam J
It’d definitely be hard.

You’d probably have to be a major world leader, the chairman of the Fed, or perhaps the CEO of a major corporation to pull it off.

Answer by Santosh
Dangerous thoughts indeed !!!
You have to be a leading world monetary strategist or a gaint fund to cause any manipulation.

Answer by muncie birder
Exactly the same way it was done in 1929. I would convince the large mutual fund companies that the party was over and it was time to liquidate their positions. Once the selloff starts it would be very hard to stop. Only problem is that today the government takes an active role in attempting to prevent such a thing from happening. Too many people have their retirement money tied up in the stock market.

Answer by Alan M
The crash you are talking about is not exactly possible. They have built in equipment to close the markets until they believe there is enough trust to reopen. There will be large dips in the future but an all out crash is impossible. It would take years to do if it were possible. The NYSE just unplugs the system and your stock is worth the same price as the time it was unplugged. They don’t turn the engine back on until there is trust. There are so many barriers for the wealthy to do what they did under the depression. They reved up the market sky high and went out the back door with all their money. I bet that the middle easterners could do it if anyone could. If all those royals in the middle east gathered together they could create the largest dip in the last 60 some years. They have a huge chunk of the American stock market. There are too many barriers for a total crash though. It would also take hundreds if not thousands of the wealthiest people in the world to bring it down the way you are talking about. No one alone could ever crash the market, including Bill Gates and Warren Buffet combined.