Yahoo Finance
On Friday, May 22, Kevin Warsh was officially sworn in as the 17th chair of the Federal Reserve.
To the casual observer, it was just another transition of power in Washington.
But for students of market history, the ceremony featured a set of eerie, structural coincidences that instantly brought to mind the euphoric, dangerous summer of 1987.
It was toward the end of my rookie year as a Wall Streeter.
Some guy named Alan Greenspan was replacing the only Fed chair I’d known by name, Paul Volcker.
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Sign up now! Volcker was ending his term after taming the inflation of the 1980s.
He was famous as a fierce proponent of Fed independence, often clashing with President Ronald Reagan over that issue.
Sounding familiar yet? 1987 was as bad as a single-day, 22% decline in the stock market sounds.
However, when we look at the period that preceded and followed it, there’s some good perspective to be gained.
You can see the lead up to the 1987 stock market crash.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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