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What happened in 1998


HousePriceMania
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HousePriceMania

I've noticed recently a pattern across most share prices, where they all become volatile around 1998 when Liebour and Tony Bliar came to power.

Who can forget Broons no more boom or bust speech, clearly what happened was the opposite

Is there some reason for this pattern ?

Here are some examples, you can see the volatility is marked after 1998.

1998 is around the time I'd say the UK started it's descent into being an oppressive shit hole.

image.png.61c7a881f58a7f722ede2f8551a7f510.png

 

image.png.b5e7f7bde16f5f8e2f1cc85e8980bae6.png

 

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image.png.b66b669c0c9ed6d8034fd56c9695d5f0.png

 

 

image.png.8b2f4c8906fa5105417dceec1c355b4b.png

 

image.png.c1bd477c3ddbaffab49f4263bbf4fc7c.png

 

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image.png.3778bb06ce73c0f281a7b69373d5c27b.png

 

 

 

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desertorchid
52 minutes ago, HousePriceMania said:

I've noticed recently a pattern across most share prices, where they all become volatile around 1998 when Liebour and Tony Bliar came to power.

Who can forget Broons no more boom or bust speech, clearly what happened was the opposite

Is there some reason for this pattern ?

Here are some examples, you can see the volatility is marked after 1998.

1998 is around the time I'd say the UK started it's descent into being an oppressive shit hole.

image.png.61c7a881f58a7f722ede2f8551a7f510.png

 

image.png.b5e7f7bde16f5f8e2f1cc85e8980bae6.png

 

image.png.04a9b7e08d122a3f386d0429ca8a74c0.png

 

image.png.b66b669c0c9ed6d8034fd56c9695d5f0.png

 

 

image.png.8b2f4c8906fa5105417dceec1c355b4b.png

 

image.png.c1bd477c3ddbaffab49f4263bbf4fc7c.png

 

image.png.f7a7c43e4d07e859437876d09d7b2f5b.png

 

image.png.3778bb06ce73c0f281a7b69373d5c27b.png

 

 

 

I think you might be asking the wrong question.

What you are really asking is why was the market so stable/rising in the run up to "98. The decade before had seen unprecedented liberalisation in financial markets with huge increases in access to funds and creation of financial products, alongside free money via privatisation programmes. Since then the market has been at the whim of the business cycle, government policy or cycles of greed and fear.

Edited by desertorchid
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HousePriceMania
12 minutes ago, desertorchid said:

I think you might be asking the wrong question.

What you are really asking is why was the market so stable/rising in the run up to "98. The decade before had seen unprecedented liberalisation in financial markets with huge increases in access to funds and creation of financial products, alongside free money via privatisation programmes. Since then the market has been at the whim of the business cycle, government policy or cycles of greed and fear.

That's one way of looking at it.  Maybe the pre-1998 ramp up was the big boys pushing up prices ready for the plebs to get involved.

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sancho panza

Possibly this.Must say,I don't think volatilitiy was particualrly pronounced then.

https://en.wikipedia.org/wiki/Glass–Steagall_legislation

The Glass–Steagall legislation describes four provisions of the United States Banking Act of 1933 separating commercial and investment banking.[1] The article 1933 Banking Act describes the entire law, including the legislative history of the provisions covered herein.

As for the Glass–Steagall Act of 1932, the common name comes from the names of the Congressional sponsors, Senator Carter Glass and Representative Henry B. Steagall.[2]

The separation of commercial and investment banking prevented securities firms and investment banks from taking deposits, and commercial Federal Reserve member banks from:

  • dealing in non-governmental securities for customers,
  • investing in non-investment grade securities for themselves,
  • underwriting or distributing non-governmental securities,
  • affiliating (or sharing employees) with companies involved in such activities.

Starting in the early 1960s, federal banking regulators' interpretations of the Act permitted commercial banks, and especially commercial bank affiliates, to engage in an expanding list and volume of securities activities.[3] Congressional efforts to "repeal the Glass–Steagall Act", referring to those four provisions (and then usually to only the two provisions that restricted affiliations between commercial banks and securities firms),[4] culminated in the 1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms.[5]

By that time, many commentators argued Glass–Steagall was already "dead".[6] Most notably, Citibank's 1998 affiliation with Salomon Smith Barney, one of the largest US securities firms, was permitted under the Federal Reserve Board's then existing interpretation of the Glass–Steagall Act.[7] In November 1999, President Bill Clinton publicly declared "the Glass–Steagall law is no longer appropriate".[8][9]

Edited by sancho panza
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