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The whole terrible phenomenon started on October 24, 1929, later to be known as
Thursday. The giant, crazy mess of the stock market crash began at the peak of a amazing prosperous decade were stocks soared and everyone had investments and no fail stocks. There was no way anything could go wrong. Famous final words. It all started one normal and innocent Thursday. All stocks started to drop at an alarming rate. People were worried, nothing could go wrong with their perfect economy, could it? America was about to find out that it could, and it would go very wrong.
Virtually everyone was affected by the crash. With the economy as good as it was, nobody could resist the temptations of investment. Nobody even knew that stocks could even go this high in value. With the mad rush to invest, people overlooked just how precariously there portfolio was designed. If the market did drop they would drop everything they invested. The more people invested the more they ended up losing in the end. During the time of the prosperous market millionaires were created practically overnight. Unfortunately people didn't know were to stop. People poured everything they had into the market. Nobody gave this risky situation a second thought. Nearly every person in America walked blindly into the inescapable trap of the market. In the end, everyone was poor, because, the only ones who did not invest, were the very poor people to start with.
For now about ten years the market had steadily risen at a unheard of pace. People had almost forgotten what it was like for the market to go down. Well Thursday October 24, 1929 the market went down, and it went down quickly. People were shocked by the sudden drop in the market, and scrambled to sell. People were selling for much lower prices, and losing a lot of their original investment. If a band of bank owners hadn't come together, all would have been lost. They pooled together their money and bought up the market. Their brave act stopped people from selling. The market went back up marginally. Four days later, when the market reopened, it quickly dropped. This time there was no one to save it. Every person sold what they had, and lost everything. Nobody had any money, literally. This was the beginning of the Great Depression. The market had been very high. It had a long way to come down. It spent the next few years doing just that. People lost there jobs, homes and some even committed suicide. It was a terrible thing to the market, but a bigger blow to the people. America had become a shadow of it's previous self.
The stock market crash went far beyond a short term calamity for people. The tragedy stretched on for seven miserable years. This consisted of utter indigence for people. Lines for soup kitchens stretched for blocks. This tragic event also affected other countries. Many American imports stopped because, no one was buying anything. The majority of the people lost their jobs in serious employment cutbacks by companies. Many companies had to close. Banks foreclosed on many people unable to pay their mortgage. The real-estate market had ground to a stop. What didn't help people at all, was the fact the market continued to drop. What saved America from this inescapable hole they were in, was the war. Had World War II not come up, we may still be in that predicament. Jobs sprang up, and there weren't even enough people to fill them! Also, many people joined the nation's fighting force, getting America out of the Great Depression.
The stock market crash was a HUGE event. The written date was October 24, 1929, but the problem was occurring years before this. The reason the stock Market crashed was because of greed. People were lied to by the companies. They were told that everything was fine and the stocks would go up, up, up. So, by the false information people borrowed money from other people and invested it in the stocks. The people were loaned the money agreed it would be paid back in the near future.
And suddenly, the stocks started to decrease. People lost money and weren't able to pay back their loans. So, they made a trade. sometimes it was a car, sometimes it was a house depending on the amount of money lost or borrowed. As the stocks went down business owners had no money, and without money couldn't pay their employees, and eventually had to fire them. Other store owners went out of business because no profits were made. Mainly all people were broke, unemployed, and in panic.
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The stock market cr
ash of 1929 cost the market about 12 percent of its value.
Sources- New York Times bests
Don’t Know Much About History
Kenneth C. Davis
The Stock Market Crash occurred during the years 1929-1932. Another name for the event was, "The Crash on Wall Street". Although Wall Street was the home of the New York Stock Exchange (NYSE), the crash effected everyone in America. On September 3rd, 1929 Dow Jones Industrial, averaged a high of 381.2, and by Thursday, October 24th experienced a 21% decline. Putting the market in a horrible position.
The days the stock market crashed are now called Black Tuesday and Black Thursday. These days are the 24th and 29th of October. As the stock market dropped even more, many people began to lose important things such as their homes, cars, and lives. This dramatic fall in the economy became the start to the hardest time during the "Roaring' 20's," known as the Great Depression, which lasted 6-7 years.
What was exceptionally hard for the people of America, was for these advanced western civilization citizens were used to a high standard of living, and giving that up was very hard. To give up on daily showers, and six-course meals, and other luxuries was difficult.
The Stock Market Crash not only effected New York and America, but the crash in our nation's economy led to other country disasters as well. The Crash of America's stock exchange also led to the crashes of England, Australia, Austria, Germany, France China, Japan, and South Africa. In South Africa the stock market went booming down in the blink of the eye. South Africa at the time, was supplied with gold. In England, more than 2.5 million people lost their jobs a few days after the American Crash.
The worst Crash, besides the depression in the U.S., was in Germany and South Africa. Germany was recorded to have the worst depression time other than the U.S.. In South Africa however was booming with gold and becoming richer and richer then suddenly disappeared.(
The information in these paragraphs is found in the following websites:
Prior to the stock market crash, the Roaring Twenties was a time of prosperity. Stock market prices were very high and not expected to drop. The economy was good. The stock market crash lead to the Great Depression. The fall of stock prices caused businesses to close, workers to be fired, and bankruptcies. Many people were unemployed and stopped spending money. Almost everybody was effected by the crash.
The 2008/2009 economy is on the edge of recession. There are many similarities in today's economy compared to the Great Depression. Both big and small businesses are closing. In turn, people loose their jobs as they did during the Great Depression. People are not spending money because of high energy prices. I predict the economy will be better in the future. I think future technology advances will help energy conservation. For example, the invention of hybrid cars helps lower the amount of fuel being used. In the future we can find other ways to make fuel.
The Great Depression was resolved by the need for workers to build equipment for World War II and it was also helped by the "New Deal". Franklin D. Roosevelt was President of the United States from 1933-1945, the only President to be re-elected three times. He ran for President by promising a "New Deal" to increase employment and to aid industrial and agricultural recovery from the Great Depression. The First New Deal (1933-1935) was characterized by relief of immediate problems of unemployment. The Second New Deal (1935-1937) was characterized by reform. Increasing members of the Congress and others called for fundamental reform of society, not just relief of the symptoms of social and economic problems.
Franklin D. Roosevelt
Bierman, Harold. "The 1929 Stock Market Crash". EH.Net Encyclopedia, edited by Robert Whaples. March 26, 2008. URL
Davis, Kenneth. "Don't Know Much About History."
Idaszak, Jerome. "2008 Economy: On the Edge of Recession." 01 02 2008 <
Sexton, Timothy. "How Did The Stock Market Crash Affect Foreign Countries?" 10/17/2008 26 Jan 2009 <
"A History of the World In the 20th Century" J.A.S. Grenville
"Stock Market Crash of 1929." (2008)
"Wall Street Crash of 1929." 26 Jan 2009 <
New York Times bests
Don’t Know Much About History
Kenneth C. Davis
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