Black Monday 19th October 1987

Poor Debbie had a rash today but it was diagnosed as an allergy and so was able to go to school as I was studying the financial markets in which the bottom fell out of the equity market, 10% on the London Exchange and 25% in New York all from fears about bank solvency with fears of the Gulf conflict escalating as US Forces attack at least two Iranian Oil platforms. In Wales over 4 ins of rain flood land and collapses a railway bridge. The Great Cello player, Jacqueline du Pre, died today of multiple sclerosis

A reasonable night, after getting warm by slipping away Diana’s hot water bottle when she was asleep. A little slow in my morning preparations, but the girls were still at breakfast when I arrived. Poor Debbie had a bad rash around her elbows, knees and on her body. Di took her straight to the Doctor this morning and he agreed with our view that it is probably an allergy. We suspect the pepsin ant-worm medicine (we’ve just taken our second doses) and her new pyjamas as well. She was allowed to go to school after her examination. Di also did her shopping in town. I stayed in my office, printing out the newly transcribed interviews, but also keeping a close eye on the teletext news of the Stock Exchange. With the markets closed, due to the hurricane on Friday, and continued day by day declines on Wall Street, today had to be a crunch day in the City. I had predicted a crash and it happened. With Hong Kong and Japan suffering record falls over night, the bottom fell out of the London Stock Exchange this morning.

The market-makers set prices down at 130-odd off of the FT100 index, but this was not enough (even though it was twice the previous record one-day fall) and it touched a fall of 300 points later, until it settled for a fall of 250 points, a fall of some 10%. Later, Wall Street opened and lost a staggering 500 points – a loss of 25% of valuations, which is horrific. The danger is that banks and institutions will start defaulting and then the markets will have no bottom at all. Meanwhile, US forces attacked at least two Iranian oil platforms in the Gulf and part of the world’s financial worries arise from the fear of escalating military confrontation. Another disaster this morning, as over 4 inches of rain in Wales swells rivers, floods thousands of acres of land and then collapses a railway bridge, causing a train to plummet into the raging torrent and killing 6 people at least. By lunch, I had finished printing out my interviews and joined Di for a nice lunch. After, I sat in the lounge watching the TV coverage of the Stock Exchange crash, with some fascination, and little Della sat on my lap and was very good and quiet. I think she has missed my company since I have resumed my studies in my office. This afternoon and evening, I transcribed a very long interview with Mrs Davis and friend from last winter, which was quite a strain. I also checked Daniel’s school work and his homework later and he made a reasonable attempt at it. Pete mowed the lawns today, after raking up all of the falling leaves, and then did some more stone clearing on the lawn bed, where about 2/3rds is now complete. To bed a bit late again tonight, but at least I am getting through the work backlog, even if my chest infection is still a problem. Wonderful past Cello player, Jacqueline du Pre, struck down in the height of her career by multiple sclerosis, died today and was mourned throughout the music world.

For the record