KOMMONSENTSJANE – The Market Crash Explained.

Posted on January 22, 2026 by kommonsentsjane

01/22/2026

With AI in the equation, now, I would think the brain power it has should be set that before a crash, it could warn the powers that be and it could be stopped and the market adjusted to fit the need since it is given the power to see so far in advance.

ttps://www.investopedia.com/terms/s/stock-market-crash.asp

The breakers and stops explained below seems to cover the bases. It seems a number of articles state that some of the stocks are over-priced. What are the rules for a company to raise their stock.

For your information:

Table of Contents

Understanding Stock Market Crashes and Their Impact

By 

James Chen

Updated September 07, 2025

Reviewed by 

Andy Smith

Fact checked by Kirsten Rohrs Schmitt

Guide to Stock Market Crashses

14 Low-Stress Jobs to ConsiderClose

What Is a Stock Market Crash?

A stock market crash is a rapid and often unexpected drop in stock prices due to major events, economic crises, or collapsing speculative bubbles. Public panic contributes to further falling prices, leading to significant economic impacts.

Famous stock market crashes include the 1929 Great Depression, Black Monday in 1987, the 2001 dotcom bubble burst, the 2008 financial crisis, and the 2020 COVID-19 pandemic.

Key Takeaways

  • A stock market crash is characterized by a rapid, unexpected drop in stock prices and can result in a prolonged bear market or economic crisis.
  • Fear and herd behavior among investors often exacerbate market crashes through panic selling.
  • Measures like circuit breakers and trading curbs are in place to prevent severe market declines and stabilize stock trading.
  • Historical stock market crashes, such as those in 1929, 1987, and 2008, have had significant economic repercussions.
  • Large financial entities may intervene to stabilize markets by purchasing substantial quantities of stocks during periods of panic.

In-Depth Analysis of Stock Market Crashes

Stock market crashes are typically abrupt double-digit percentage drops in a stock index over a few days. Stock market crashes often make a significant impact on the economy. Selling shares during a sudden drop and buying too many stocks on margin are common ways investors lose money during crashes.

Well-known U.S. stock market crashes include the market crash of 1929, which resulted from economic decline and panic selling and sparked the Great Depression, and Black Monday (1987), which was also largely caused by investor panic.

Another major crash occurred in 2008 in the housing and real estate market and resulted in what we now refer to as the Great Recession. High-frequency trading was determined to be a cause of the flash crash that occurred in May 2010 and wiped off trillions of dollars from stock prices.

In March 2020, stock markets around the world declined into bear market territory because of the emergence of a pandemic of the COVID-19 coronavirus.

Image
Image by Sabrina Jiang © Investopedia 2021

Strategies to Prevent Stock Market Crashes

How Circuit Breakers Mitigate Stock Market Crashes

Since the crashes of 1929 and 1987, safeguards have been put in place to prevent crashes due to panicked stockholders selling their assets. Such safeguards include trading curbs, or circuit breakers, which prevent any trade activity whatsoever for a certain period of time following a sharp decline in stock prices, in hopes of stabilizing the market and preventing it from falling further.

For example, the New York Stock Exchange (NYSE) has a set of thresholds in place to guard against crashes. They provide for trading halts in all equities and options markets during a severe market decline as measured by a single-day decline in the S&P 500 Index. According to the NYSE:1

  • A market-wide trading halt can be triggered if the S&P 500 Index declines in price as compared to the prior day’s closing price of that index.
  • The triggers have been set by the markets at three circuit breaker thresholds—7% (Level 1), 13% (Level 2), and 20% (Level 3).
  • A market decline that triggers a Level 1 or Level 2 circuit breaker after 9:30 a.m. ET and before 3:25 p.m. ET will halt market-wide trading for 15 minutes, while a similar market decline at or after 3:25 p.m. ET will not halt market-wide trading.
  • A market decline that triggers a Level 3 circuit breaker, at any time during the trading day, will halt market-wide trading for the remainder of the trading day.

Important

Stock market crashes can erase investment values and significantly harm those relying on returns for retirement. While equity price collapses can happen quickly or slowly, crashes often lead to a recession or depression.

The Role of Plunge Protection Teams in Market Stability

Markets can also be stabilized by large entities purchasing massive quantities of stocks, essentially setting an example for individual traders and curbing panic selling. In one famous example, the Panic of 1907, a 50% drop in stocks in New York set off a financial panic that threatened to bring down the financial system. J. P. Morgan, the famous financier, and investor, convinced New York bankers to step in and use their personal and institutional capital to shore up markets.2 However, these methods are not always effective and are unproven.

The Bottom Line

A stock market crash is characterized by its sudden and steep decline in stock prices, often following a catastrophic event or economic crisis. Historically, events like the 1929 Great Depression, the 1987 Black Monday, and the 2008 financial crisis are notable examples. Preventive measures like circuit breakers and trading curbs have been implemented to curb panic selling and stabilize markets.

However, the fear-driven reactions that accompany crashes can exacerbate economic downturns. Understanding these market dynamics and the historical context can empower investors to make informed decisions during volatile times.

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15 USC 78i: Market Manipulation and Securities Fraud Laws – LegalClarity

The above is under a copy right and you would have to go to the site to read.

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Are there any rules on companies increasing their stock price and any guards against misleading people on the value of any stock

YES!

Again, with AI in the equation, now, I would think the brain power it has should be set that before a crash, it could warn the powers that be and it could be stopped and the market adjusted to fit the need since it is given the power to see so far in advance.

Now, with AI, and all of the checks and balances available so far in advance – a crash should never happen.

kommonsentsjane

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KOMMONSENTSJANE – Is the Democratic Party Beyond “FIXIN'”.

Posted on January 22, 2026 by kommonsentsjane

01/23/2026

KOMMONSENTSJANE – Victor Davis Hanson: Gavin Newsom’s California in ‘Existential Freefall’.

Posted on January 23, 2026 by kommonsentsjane

01/23/2026

ttps://www.youtube.com/watch?v=x6khVcgAGrw

Just add an ‘h’ to the above if WordPress erases the video.

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01/21/2026

Remember how many years Pelosi has been harrassing the President! The bad part is Pelosi is using her nephew, Governor Newsom, to take her place in trying to still “take out” the President. They are not going to stop until the left under Obama/Biden are made responsible for the left’s COUP. Look what an assel Newsom made of himself at Davos trying to panhandle his evil. He can’t even put his home state in a positive manner while Pelosi is wheeling/dealing in her disability machine with the stock market while on duty in the Congress. She is still trying to do harm to the American people with the aid of Newsom/Obama/Hillary/Soros, who is still fightin’ WWII. Remember he was on the opposite side.

The following President’s parody will try to lighten your load. The left is trying to convince the American people that the present situation our country is going through IS President Trump’s fault. Which is just another lie and nothing new to the world.

When something is broke like the debt and the corruption (Minnesota plus all of the blue states) and give-away money the left usurped to foreign countries during their 12 years – and now the Republicans are trying to fix that china broken vase which as we know is hard to do. The results are what is putting the American people in a bind. So look to the left (the progressives) as to who to blame.

We are praying they can pull this off.

Then – we have this MARKET CRASH which they are constantly throwing in the mix while the people are hurting.

Understanding Stock Market Crashes and Their Impact.

Let’s go down memory lane and view what needs fixin’!

KOMMONSENTSJANE – TRUMP CHRISTMAS PARODY

Posted on December 23, 2017 by kommonsentsjane

Enjoy.  Merry Christmas and Happy New Year.

Posted in Uncategorized | Leave a comment

KOMMONSENTSJANE – Victor Davis Hanson: January 6 – Five Years Later—Were We Played?

Posted on January 22, 2026 by kommonsentsjane

01/21/2026

Victor Davis Hanson: January 6, Five Years Later—Were We Played?


Victor Davis Hanson: January 6, Five Years Later—Were We Played?

January 6 United States Capitol attack

Wikipedia • On January 6, 2021, the United States Capitol in Washington, D.C., was attacked by a mob of supporters of President Donald Trump in an attempted self-coup, two months after his defeat in the 2020 presidential election.

The Daily Signal and Victor Davis Hanson

ttps://www.youtube.com/watch?v=Ml1DjtnYhM8

Just add an ‘h’ to the above if Victor is erased.

Share

Jan 5, 2026

Victor Davis Hanson: In a Few Words

Victor Davis Hanson:

What We Were Told About January 6 Doesn’t Add Up As the fifth anniversary of January 6 approaches, the Left’s carefully constructed narrative is starting to crack.  On today’s episode of “Victor Davis Hanson: In a Few Words,” Hanson explains how branding January 6 an “insurrection” drove impeachment efforts, investigations, and years of specifically framed media coverage. He also examines the arrest and confession of Brian Cole Jr., the alleged January 6 pipe bomber, and why the delayed investigation and lingering questions surrounding his background cast doubt on many of the conclusions Americans were first told to accept. “To sum up everything we’ve been told about January 6th from the congressional committee to Kamala Harris’ description of it, to comparisons with the four-month, $2 billion, 35 dead, 1,500 police officers, prior riots, arson attacks on courthouses, police precincts that was never really mentioned as a comparable crisis in the republic, all of these things, a number of FBI informants, a number of FBI agents, any effort to find the pipe bomber, the treatment of the January—it was all never transparent. We never got the honest story. So, that begs the question, why? Why didn’t they just come out and say,

“Here’s all the information”? And the reason is, they wanted to cement a narrative in everybody’s mind that a reckless demonstration that turned into a riot was a pre-planned insurrection by Donald Trump, who ordered it, and therefore, should forfeit his political career, and he should never be allowed to run for office.” 0:00 The January 6th Narrative 1:40 Inconsistencies in the Investigation 2:20 The Mysterious Pipe Bomber 3:49 Media and Political Reactions 5:05 FBI Informants and Undercover Agents 7:02 Summarizing the January 6th Events 8:47 Conclusion 👉 This episode is sponsored by the Pepperdine School of Public Policy. Learn more: ⁠https://go.pepperdine.edu/dailysignal⁠

👉Don’t miss out on Victor’s latest short videos by subscribing to The Daily Signal today. You’ll be notified every time a new piece of content drops: ⁠https://www.youtube.com/dailysignal?s… 👉Want more VDH? Watch Victor’s weekly, hour-long podcast, “Victor Davis Hanson: In His Own Words,” now! Subscribe to his YouTube channel and enable notifications:  ⁠   / @victordavishanson7273   👉More exclusive content is available on Victor’s website: ⁠https://victorhanson.com⁠   👉The Daily Signal cannot continue to tell stories, like this one, without the support of our viewers: ⁠https://secured.dailysignal.com/⁠ 

*This content was recorded by Victor Davis Hanson prior to his Dec. 30 medical operation.

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Thank you, Victor

kommonsentsjane

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KOMMONSENTSJANE – All The World Leaders Joining President Trump’s Board of Peace.

Posted on January 21, 2026 by kommonsentsjane

01/21/2026

All the world leaders joining Trump’s ‘board of peace’

Story by Sam Mednick

Jan 21,2026

All the world leaders joining Trump’s ‘board of peace’

Donald Trump’s ambitious “board of peace”, initially conceived as a small group of global leaders overseeing the Gaza ceasefire, has significantly expanded its scope.

The Trump administration’s vision now encompasses a broader role, with Mr Trump extending invitations to dozens of nations and suggesting the board could soon mediate various international conflicts, akin to a pseudo-UN Security Council.

Further details are anticipated at the World Economic Forum in Davos, Switzerland, where Mr Trump is headed. Ahead of the summit, Israeli Prime Minister Benjamin Netanyahu confirmed on Wednesday his agreement to join the board, despite his earlier criticisms of the committee tasked with the Gaza ceasefire.

While the board’s official charter remains undisclosed, a draft version obtained by The Associated Press indicates that substantial power would be concentrated in Mr Trump’s hands. The draft also outlines that a $1 billion contribution would secure permanent membership.

Here’s what you need to know.

The scope of the Board of Peace appears to go beyond Gaza

The Trump administration now seems to envision the board of peace with a far broader scope beyond Gaza.

In letters sent Friday to various world leaders inviting them to the board, Trump said it would “embark on a bold new approach to resolving global conflict,” suggesting it could act as a rival to the UN Security Council, the most powerful body of the global organisation created in the wake of World War Two.

A draft charter for the board, obtained from a European diplomat and confirmed by a US official as accurate as of Monday, uses expansive language to describe its ambitions.

It emphasises “the need for a more nimble and effective international peace-building body” and says “durable peace” requires “the courage to depart from approaches and institutions that have too often failed”. It adds an aim to “secure peace in places where it has for too long proven elusive”.

Israeli Prime Minister Benjamin Netanyahu confirmed on Wednesday that he has joined the Board of Peace (Getty)

Israeli Prime Minister Benjamin Netanyahu confirmed on Wednesday that he has joined the Board of Peace (Getty)

Under the charter, the chairman — which Trump says will be him — has the power to invite member states, break any ties in a vote, decide how frequently it meets, and create or dissolve subsidiary entities.

The expenses of the peace board will be funded by contributions from member states, which serve three-year terms. Members who pay “more than one billion United States dollars in cash” during their first year can have a permanent place on the board, the draft says.

The draft is under constant revision, is not finalised, and may undergo significant changes, according to the US official, who was not authorised to comment publicly and spoke on condition of anonymity.

Countries around the world have been invited

So far, Israel, the United Arab Emirates, Pakistan, Morocco, Vietnam, Kazakhstan, Hungary, Argentina and Belarus have agreed to take part.

Netanyahu’s Wednesday announcement marked a switch from his previous stance. His office had said the composition of the Gaza executive committee — which includes Turkey, Israel’s key regional rival — ran “contrary to its policy,” without saying why.

Invitation letters from Trump have also been sent to Paraguay’s leader Santiago Peña, Canadian Prime Minister Mark Carney, Egyptian President Abdel-Fattah el-Sissi and Turkish President Recep Tayyip Erdogan. Also, Russia, India, Slovenia, Thailand and the European Union’s executive arm have said they received invitations.

Trump confirmed on Monday night that Russian President Vladimir Putin had been invited to join the Board (Andrew Caballero-Reynolds/AFP via Getty)

Trump confirmed on Monday night that Russian President Vladimir Putin had been invited to join the Board (Andrew Caballero-Reynolds/AFP via Getty)

The Kremlin is now “studying the details” and will seek clarity of “all the nuances” in contacts with the United States, Kremlin spokesperson Dmitry Peskov said. Trump confirmed on Monday night that Russian President Vladimir Putin had been invited.

It was not immediately clear how many, or which, other leaders would receive invitations.

Some US allies have already declined

France — which is at odds with the Trump administration over its desire to take over Greenland, a self-governing territory overseen by Nato ally Denmark — apparently doesn’t plan to join the board so far.

“Yes to implementing the peace plan presented by the president of the United States, which we wholeheartedly support, but no to creating an organisation as it has been presented, which would replace the United Nations,” French Foreign Minister Jean-Noel Barrot said Tuesday.

Hearing late Monday that French president Emmanuel Macron was unlikely to join, Trump said, “Well, nobody wants him because he’s going to be out of office very soon.”

“I’ll put a 200 per cent tariff on his wines and Champagnes and he’ll join,” Trump told reporters. “But he doesn’t have to join.”

Italian Economy Minister Giancarlo Giorgetti said on Wednesday it appeared problematic for his country to join the so-called Board of Peace.

Speaking at an event in Rome to present the Winter Olympics Italy is hosting next month, Giorgetti said that judging from news reports he had read “it seems there are some problems” regarding Rome’s participation in Trump’s initiative.

Italian daily Corriere della Sera reported earlier on Wednesday that Italy would not take part, citing concern that joining a group led by a single country’s leader would violate the constitution.

Italian Prime Minister Giorgia Meloni, a right-wing leader who has had warm relations with Trump, is unlikely to go to Davos, a source told Reuters.

The Italian government did not immediately respond to a request for comment on the Corriere report.

A spokesperson for the German government said they were “grateful for receiving an invitation to join the board” and will respond in due course.

The other committees that will work with the board of peace

The White House said an executive board will work to carry out the vision of the board of peace.

The executive board’s members include US secretary of state Marco Rubio, Trump envoy Steve Witkoff, Trump’s son-in-law Jared Kushner, former British prime minister Tony Blair, Apollo Global Management CEO Marc Rowan, World Bank president Ajay Banga, and Trump’s deputy national security adviser Robert Gabriel.

Trump’s son-in-law Jared Kushner (centre) and Steve Witkoff, US special envoy to the Middle East (right), will join the executive board of the board of peace (Getty)

Trump’s son-in-law Jared Kushner (centre) and Steve Witkoff, US special envoy to the Middle East (right), will join the executive board of the board of peace (Getty)

The White House also announced the members of another board, the Gaza executive board, which, according to the ceasefire deal, will be in charge of implementing the tough second phase of the agreement. That includes deploying an international security force, disarming the Palestinian militant Hamas group and rebuilding the war-devastated territory.

Nickolay Mladenov, a former Bulgarian politician and UN Mideast envoy, is to serve as the Gaza executive board’s representative overseeing day-to-day matters. Additional members include: Witkoff, Kushner, Blair, Rowan, Turkish foreign minister Hakan Fidan; Qatari diplomat Ali Al-Thawadi; Hassan Rashad, director of Egypt’s General Intelligence Agency; Emirati minister Reem Al-Hashimy; Israeli businessman Yakir Gabay; and Sigrid Kaag, the Netherlands’ former deputy prime minister and a Mideast expert.

The board will also supervise a newly appointed committee of Palestinian technocrats who will be running Gaza’s day-to-day affairs.

Additional reporting by Reuters.

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kommonsentsjane

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