Crash of 87 Since more then likely nobody here is aware of what caused the Cash of 87 here is the short version Volker who tamed the inflation of the 70 s by the simple method of NOT PRINTING MONEY had retired and Greenspan had been appointed his successor The markets were nervous about the new face and to prove that he could be tough on inflation like Volker Greenspan tightened the money supply after he took over resulting in higher interest rates Stock Markets and the economy go BOOM when interest rates go up Greenspan took over in August of 2007 interest rates go up and 2 months later the market crashes There you go The short version 71 174 141 4