What do the following stock market crashes all have in common: 1907, 1929, 1987 and now, 2008? The answer is that they all occurred in the month of October. Stock trading continues throughout the year so the odds are one in 1,728 that this is a coincidence.
The people in the finance industry are human beings. The center of U.S. finance is New York City. October in New York is when summer is gone and there is a chill in the air.
This affects the moods of the stock traders and other financial people and if there is some instability in the economy to begin with, the crash tends to come in October. What better way is there to explain this? If the center of finance and stock trading were moved to a warmer location, these crashes may not have happened.
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