Updated: Oct 16
Friday the 13th has long been associated with superstitions and bad luck. While many consider it an unlucky day, it's essential to remember that financial endeavours can be affected by both good and bad luck. In this article, we explore some of the most recognisable financial misfortunes in history, fittingly timed for today's date.
The 1929 Stock Market Crash:
13th October 1929 marked one of the most infamous days in financial history. Black Friday, as it came to be known, saw the start of the Great Depression. Investors lost fortunes overnight as the stock market plummeted, wiping out the savings of countless individuals and sparking a decade of economic turmoil.
The South Sea Bubble:
In the 18th century, the South Sea Company promised riches to investors through its speculative trading ventures. Many were lured by the promise of unimaginable wealth, but when the bubble burst in 1720, it left investors penniless and the British economy in shambles.
The Dot-Com Bubble:
The late 1990s witnessed the meteoric rise of technology stocks, driven by the internet boom. However, on 10th March 2000, the bubble burst. Investors who had put their faith in unprofitable tech companies lost billions as stock values plummeted.
The Housing Market Crash of 2008:
On 12th September 2008, Lehman Brothers filed for bankruptcy, triggering a financial crisis of unprecedented proportions. The collapse of the housing market and risky lending practices led to a global recession, causing widespread unemployment and foreclosures.
The Mt. Gox Bitcoin Scandal:
In 2014, the cryptocurrency world was rocked by the bankruptcy of Mt. Gox, a major Bitcoin exchange. On 13th February 2014, it filed for bankruptcy protection, claiming that hackers had stolen approximately 850,000 Bitcoins, worth hundreds of millions of pounds, leaving countless investors empty-handed.
The Enron Scandal:
13th December 2001 marked the beginning of the end for Enron, once a leading energy company. The company's widespread accounting fraud was exposed, leading to its bankruptcy and a wave of corporate scandals that shook the business world.
While Friday the 13th is considered by many to be an unlucky day, these financial endeavours demonstrate that bad luck can strike at any time. These historical examples serve as a sobering reminder of the importance of due diligence, risk management, and ethical business practices in the world of finance. Bridging lenders, too, should be aware of the risks involved and the potential pitfalls that financial ventures can encounter, regardless of the date on the calendar.