Macro

The Three Mile Island nuclear plant experienced the worst accident in U.S. nuclear history, with officials confirming severe damage to the reactor core, rendering it unusable. The incident triggered evacuations, raised radiation concerns, and could lead to long-term regulatory and financial impacts for the nuclear industry and utilities involved.

Volcker shock, discount rate to record 12%, valuation collapse

Shortages triggered by lost Iranian supply and allocation rules produced hours-long gas lines and sporadic violence across the US. The visible crisis crushed consumer confidence, hit auto sales, and pushed the economy toward the 1980 recession.

Volcker 'Saturday Night Special' crushes auto credit

Facing collapse amid gas lines and slumping sales of its big cars, Chrysler formally sought federal assistance. The request opened a fierce national debate over bailing out a top-ten industrial employer, with banks, suppliers, and the UAW all exposed to its fate.

The Iranian Revolution sent oil to $35 (surging input costs) and gas rationing hit autos, then the October Volcker shock (discount to 12%) collapsed capital-goods financing while Chrysler begged for aid.

Carter blocked all official Iranian assets in US banks and their foreign branches after Tehran threatened to withdraw deposits. The unprecedented freeze rattled the Eurodollar market, raising questions about the safety of sovereign deposits in Western banks.

Gold above $500; 'Death of Equities'

CPI 13.3%, outlook grim

The Shah left Iran at the height of revolutionary upheaval, effectively ending the monarchy and leaving oil exports paralyzed. Spot crude prices surged on fears of prolonged supply loss, marking the decisive escalation of the second oil shock.

The Iranian Revolution doubled crude toward $35 and Carter's phased decontrol finally let domestic producers capture market prices; a euphoric, record-profit boom and the drilling rush of a generation, clouded only by a windfall-tax threat.

Soviet invasion of Afghanistan ends détente; buildup imminent

Personal Software released VisiCalc, the first electronic spreadsheet, which quickly became the killer application pulling personal computers onto corporate desks. The program turbocharged Apple II sales and validated the business case underpinning the coming PC investment boom.

The tech sector this month feels cautiously optimistic, buoyed by the release of VisiCalc for the Apple II, which marks a meaningful step in positioning microcomputers as legitimate business tools. While this development adds tangible utility and expands the market’s potential, the overall impact remains limited to early adopters and niche enterprise use, preventing broader momentum. Absent wider commercial adoption or infrastructure shifts, sentiment settles at neutral.

Inflation-hedge demand still supports property values

Amid the second oil shock and 13% inflation, my drug business was a haven with real pricing power, so demand and margins held; the October Volcker shock cooled valuations late in the year.

Bullion smashed through $500, having doubled in a year, as investors fled paper currencies amid oil shocks, hostage crisis, and double-digit inflation. The frenzy in precious metals reflected a global crisis of confidence in the dollar-based monetary order.

The Iranian Revolution's oil shock, 13% inflation, and Hunt-driven silver buying sent gold through $500 for the first time, delivering runaway revenue to precious-metals and commodity producers even as Volcker's October rate shock loomed.