The Taiwan History Podcast: Formosa Files
Taiwan’s Stock Market Bubble – And the Crash of 1990 - S5-E8
Apr 10, 2025
Explore the dramatic rise and fall of Taiwan's stock market in 1990, witnessing an astounding 80% collapse after a speculative frenzy. Discover how the illegal lottery craze captivated the public and fueled risky investments, transforming Taiwan into the 'Republic of Casino.' Dive into the chaotic trading environment that emerged from deregulation and booming exports, and uncover the deep personal struggles following the crash. Despite the turmoil, the resilience of Taiwan's economy shines through in the aftermath.
AI Snips
Chapters
Books
Transcript
Episode notes
Taiwan's 1990 Market Collapse
- Taiwan Stock Exchange peaked near 12,500 in early 1990 and crashed 80% to 2,500 eight months later.
- This stands as one of the most severe stock market crashes in history.
Lottery Fever Sparks Economic Concern
- The Nationalist government launched a patriotic lottery in 1950 to raise funds.
- An illegal closely linked lottery, Da Jia Le, exploded in popularity in 1985, causing social and economic problems.
Lottery Kidnappings Over Winning Numbers
- The lottery mania led to kidnappings demanding lottery winning numbers as ransom.
- The artist who illustrated lottery tickets was kidnapped three times due to gambler delusions.