Draft:Souk al manakh
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Comment: The section 'Crash of 1982' has been copypasted verbatim from Souk Al-Manakh stock market crash without proper attribution. Either rewrite it in your own words, or attribute it as instructed at WP:CWW. DoubleGrazing (talk) 13:00, 30 August 2023 (UTC)
- Comment: Please see WP:REFB for advice on correct referencing using inline citations and footnotes which are correctly formatted. DoubleGrazing (talk) 12:53, 30 August 2023 (UTC)
Souk Al Manakh was an unofficial stock exchange operated from 1978 to 1982 in Kuwait. It was created by a group of traders who wanted to invest and trade shares and stocks that were not available in the official Kuwait stock exchange, Boursa. By 1981, nearly 40 stocks of companies in non-Kuwaiti Gulf countries were trading on the Souk. By the summer of 1982, Souk Al Manakh was the third biggest stock exchange in the world behind USA and Japan, surpassing UK with the estimated value of $100 Billion ($312 Billion in 2023, adjusted for inflation).
History[edit]
Souk Al Manakh was created by a group of traders who wanted to invest in stocks that were not available in the official stock exchange, Boursa. The name translates to "The Market at the resting place for camels". It was located in an air-conditioned parking garage in the historic area of Jibla, Kuwait City.
The Oil Embargo of 1973 in response to the west's support for Israel in Yom Kippur war shot up the oil prices causing massive profits for oil producing countries, as a result, citizens in the Middle East became rich and started to invest their money in stocks. One such stock trading company in Kuwait was set up called, Boursa which was the official stock exchange of Kuwait.
Crash of 1982[edit]
See: Souk Al-Manakh stock market crash
Share dealings using postdated checks created a huge unregulated expansion of credit. The crash of the unofficial stock market finally came in August 1982, when a dealer presented a postdated check from a young Passport Office employee for payment and it bounced. By September 1982, the Kuwaiti Ministry of Finance ordered all dubious checks to be turned in for clearance and shut down the Souk Al-Manakh. The official investigation summed the value of worthless outstanding checks at the equivalent of US$94 billion from about 6,000 investors. Kuwait's financial sector was badly shaken by the crash, as was the entire economy.
References[edit]
- [1]The Souk al Manakh: Kuwait's first big bubble (thenationalnews.com).
- [2]The Great Kuwaiti Crash - The Tontine Coffee-House (tontinecoffeehouse.com)
- [3]The Souk Al-Manakh: The Anatomy of a Pure Price-Chasing Bubble (levyinstitute.org)
- [4]The Souk al-Manakh Crash (clevelandfed.org)
- [5]Souk-Al-Manakh (Kuwait) - Market Bubble - Recap Finance
- [6]The Bubble That Broke Kuwait : The Indicator from Planet Money : NPR
- [7]The Biggest Stock Bubble You’ve Never Heard Of: The Souk Al-Manakh Meltdown - YouTube