1987 stock market crash
Sharemarket operators Stuart Beadle (right) and Grant Taylor deal with the fall in stock prices, New Zealand, 25 October 1987 Photograph by Ross Giblin (born 1957), New Zealand, courtesy of Alexander Turnbull Library, Wellington, New Zealand (Dominion Post Collection, EP/1987/5979/26)
On 20 October 1987, the New Zealand stock market crashed. Many private investors suffered severe financial losses, and some finance corporations failed spectacularly.
The speculation of the mid 1980s contributed to the crash. Thousands of ordinary New Zealanders had exploited their sudden freedom from strict government control over economic activity. Under 'Rogernomics', they started buying and selling shares on the stock market. Many people made windfall profits. Some spent money on extravagances, often parading their new wealth.
Despite the stock market crash, the fourth Labour Government and succeeding National Governments maintained their 'hands-off' economic policies.