Wall+Street

//**BY****: Mitch Cohen, Mark VonEisenburg, Megan Lepore, Amber Milne**//

The 1920's brought us fantastic changes but, it also brought us a stock market crash that pulled our country into the Great Depression. This chain of events led to economical difficulty and caused a lot of people to lose their jobs, homes, and dignity. It was a time for great humiliation through out the United States because we were known as a strong nation and our enemies laughed in hatred at our slow and great down fall. Though we pulled ourselves out in time, it was a scary time and place to be. It made all of us stronger and closer together then ever because we all felt each others pain and accepted peoples poverty rather then scowled and walked away. Over coming this obsticale was no easy task but all of the citizens worked through it, as a team, and teamwork is the best form of healing. media type="custom" key="3077510" The 1920's were a time of unbelievable prosperity. The stock market was going up and the Untied States seemed to know the act for limitless prosperity. However, that same act that generated all of that profit would be the cause of Black Tuesday. People were taking advantage of the selling of products. Too many people were going crazy over money. When to many people are selling that is just the formula for a stock market crash. When the demand for products is high there has to be more selling. Investment during the 1920's was based on the unstable basis of margin buying. Investors bought borrowed money from their brokers, who went to banks for that money. When stocks failed and investors needed to default, the worse happened. The money was lost!
 * __Dow during build-up and recession__ **

The stock market crash formed a domino effect among the states crashing hard onto the economy of other nations who invested in the US stock market. Demand for goods quickly decreased as did new investments that should have been made. It said to have occured on Thursday the 24th and Tuesday the 29th of October. "September 3rd the Dow Jones Industrial Average reached a record high of 381.2" (Bierman 1). By November 13th the market fell to 199. The Great Depression proved that maybe stock prices were too high. At the time, Hoover was president, and he also thought the reason for such a crash was because the stock prices were too high as well as many others did.

"England was losing money as a result of investment in the New York Stock Exchange and wanted desperatly to decrease this investment." (Bierman 1). This of course resulted in lack of English investment. In the end, no reason has been reached on the causes of the 1929 stock market crash, the evidence that shows how frantic people got over the reportings that were made about the stock market, that it may have been that the fear of speculation caused it to crumble. It is possible that Hoover's aggressive campaign against speculation set off the selling panic and the consequences that came after. (Bierman 1). media type="custom" key="3076794"

The 1920's stock market crash brought the roaring 20's to an extreme halt.This tragic event had an enormous affect on people to the point were they did not know were there minds were. People were losing money fast and millionaires were becoming paupers in a night. This was making the whole financial business go crazy. This was just the beginning of the Great Depression.

The crash made a loss of almost one billion dollars in a day. It immediately depressed consumer buying. Many buisness owners were losing their jobs and losing money fast. Those who believe in the strength of the economic bubble and invested everything they had, lost everything they had. Of course, the economy weakened and the unemployment went up. The desire for consumer durables went down as Americans became satisfied with what they had. This in turn affected the companies and workers that produced these items. People could not buy as much because they did not have as much money. This went on for a long time and eventually...The Great Depression had begun. The stock Market began to be very popular,millions of americans started to buy stocks. It was a complete free for all. As an example, If each product was a hair on a head. The hole head of hair would be gone within 1 day. The stock market soared, everyone was buying stocks but then the stocks were selling more than they were worth. The invetors were going into serious debt."The market continued to decline in value, leaving investors who had purchased stock on credit financially destroyed."( http://www.ohiohistorycentral.org/entry.php?rec=559____ ) Some investors committed suicide because they thought that they would never be able to escape from their debts. October 1929 became known as the Stock Market Crash of 1929. That was beginning of the Great Depression. During this economic disaster millions of Am erican workers lost their jobs.  Some Wall Street financial officials tried to influence stock buyers by buying as many shares as they could. It worked -- temporarily. Black Tuesday soon came on October 29. The panic on the in the Exchange room changed to chaos. According to an unknown observer, "They hollered and screamed, they clawed at one another's collars. It was like a bunch of crazy men. Every once in a while, when Radio or Steel or Auburn would take another tumble, you'd see some poor devil collapse and fall to the floor."(  http://www.eyewitnesstohistory.com/snpmech5.htm ) This was an example of the true Crash, although it was not known this way for most of the public even back then. The Market continued to go downward but never as dramatic as Black Tuesday. Thirty billion dollars became lost in the end -- more than twice the national debt. The nation only slipped farther into the depths of the Great Depression from this point.

During the Great Depression many events occured. The Great Depression started in the United State October 29, 1929. It efected everyone it did not matter if u were rich or poor. [|"Farming] and rural areas suffered as crop prices fell by roughly 60 percent Facing plummeting demand with few alternate sources of jobs, areas dependent on [|primary sector industries] such as farming, [|mining] and [|logging] suffered the most. " (wiki great depression pg 1) The great depression ended at differrent times for different people. The Great Depression hit America unprepared. At the end of the 1920s people in developing nation had no idea of what was coming. Even leading industrialists and businessmenof optimism. In the New York Times of October 29th 1928, Alfred Sloan, president of General Motors, declared his “conviction that our general economic and industrial situation is thoroughly sound”.The fact, the American economy had shown signs of weakness even before 1929. Investment opportunities were no longer unlimited, as demand fell off during the second half of the 1920’s especially for housing and durable consumer goods. media type="youtube" key="JrDhzdCLl3Y" height="546" width="672" By 1933 millions of Americans had lost ther job. Bread lines were a becoming ordinairy in cities from coast to coast. tons of people searched for employment, work and shelter. A newstart for the unemployed came from the Civilian Conservation Corps(CCC), a program made to relieve young men between 18 to 25 years old. The CCC enrolled jobless young men in work camps throughout the nation for about $30 per month. Two CCC conservation efforts took place local to our county; the building of Stokes State Forest and Fairview lake(Mr. Gilmartin). They began to cycle the employment flow around here again.2 million young men took part during the decade. They participated in a variety of conservation efforts such as planting new trees and maintaining forests,thus keeping game and birds in or der.   Work relief came in the form of the Civil Works Administration. Although criticized as "make work," the jobs funded ranged from ditch digging to highway repairs to teaching. Created in November 1933, it was abandoned in the spring of 1934. Roosevelt and his key officials, however, continued to favor unemployment programs based on work relief rather than welfare.  In agriculture, at  this <span style="font-family: Arial,Helvetica,sans-serif;"> time still an important factor in the national econom <span style="font-family: Arial,Helvetica,sans-serif;">y, real incomes had stopped growing: falling prices in the world market posed big problems for American farmers too. Statistics cannot <span style="font-family: Arial,Helvetica,sans-serif;"> convey the extent of the effects of the Depression. In 1932, 30 million people were unemployed, while millions more suffered from short hours and extremely low wages. The consequences were hunger, a higher mortality rate apathy and hopelessness, as well as an increase in crime.

The roaring twenties, which wa s a precursor to the crash, was an era of much prosperity and loads of exess for the jazzy cities arround the country. Despite warnings against speculation,many people believed that the market could sustian high price levels. Shortly before the crash Irving Fisher famously proclaimed "Stock prices have reached what looks like a permanatly high plateau." The euphoria and financail gains of the great market were about to be critically shattered on an up coming Black Thursday, when share prices on the NYSE completely collapsed.Before the crash stock shares were seen as very safe pass times with no risks and lots to gain. Many people became millionaires is minutes as their shares went up one percent and ten percent was given to them. No body could of ever guessed that the biggest stock collapse in history was about to ruin their gambaling lives. **__Stock Building on Wall Street Before the Crash__** There were many different companies an industries that have either layed off people in mass quantities or have been clawing at the doors of the giant banks and auto industries for a last chance for there company (hoping they will get bailed) in the latest crash of 2008.The list of companies that have already been bailed out is very extensive and somewhat surprising. They consist of many industries including banking (Citicorp),insurance(AIG) and automotive (General Motors)Nearly 2.6 million jobs were lost in 2008, with 1.9 million destroyed in just the past four months. It's the biggest job loss since 1945, when 2.75 million jobs were lost. Thes e great losses in some very important industries have been affecting so many other things than o riganally percieved. This issue is also affecting the entire world in an indirect way with tension on global issues such as the money struggle. It is unamagineable to think that a much much worse crash has done this same thing before to our world. __**Stock Building on Wall Street After the Crash**__ media type="youtube" key="UYrv8Q5Ji0Y" height="366" width="445"

__References__ http://www.stock-market-crash.net/1929.htm__<span class="Apple-style-span" style="line-height: normal; font-family: 'times new roman'; border-collapse: collapse;"> __ Stock Market Crash Dot Net, "The Stock market Crash of 1929." Stock Market Crash__. 2008. Stock Market Crash Dot Net.. 19 Jan 2009 < [|http://www.stock-market-crash.net/]>.<span class="Apple-style-span" style="line-height: normal; font-family: 'times new roman'; border-collapse: collapse;"> <span class="Apple-style-span" style="line-height: normal; font-family: 'times new roman'; border-collapse: collapse;"> The New York Times, "Causes of the Stock Market Crash." __1929 Stock Market Crash__. May 1st 1996. 19 Jan 2009 < [|http://www.angelfire.com/co/pscst/stock.html]>. Wikiproject United States, "Wall Street Crash of 1929." __Wikipedia The free encyclopedia__. January 20 2008. Wikiproject United States. 20 Jan 2009 < [ [ __<span style="color: rgb(0, 0, 0);">| __ <span class="Apple-style-span" style="line-height: normal; font-family: 'times new roman'; border-collapse: collapse;"> http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929 ]]>. ""Wall Street Crash of 1929." http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929____. 20 January 2009. 22 Jan 2009 <http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929>. __Nutting, Rex. "Carnage continues: 524,000 jobs lost in December."__ http://www.marketwatch.com/news/story/carnage-continues-524000-jobs-lost/story.aspx?guid=%7BF9716B93-2009-4F9D-A2CC-6890DA427BF2%7D__. 09 January 2009. 22 Jan 2009 <http://www.marketwatch.com/news/story/carnage-continues-524000-jobs-lost/story.aspx?guid=%7BF9716B93-2009-4F9D-A2CC-6890DA427BF2%7D>. __"Stock Market Crash."__ www.stock-market-crash.net/1929.htm__. 22 Jan 2009 < www.stock-market-crash.net/1929.htm>.__ "The depression--An Overview." __http://www.english.uiuc.edu/maps/depression/overview.htm__. 25 Jan 2009 <http://www.english.uiuc.edu/maps/depression/overview.htm>.__ "The 1929 Stock MarketCrash." __eh.net/encyclopedia/article/Bierman.Crash__. eh.net/encyclopedia/article/Bierman.Crash. 22 Jan 2009