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Causes of the 2008 stock market crash
The 1929 street stock crash as well as the economic and social impact of the crash in usa
The 1929 street stock crash as well as the economic and social impact of the crash in usa
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The Stock Market Crash of 1929 was the turning point for the United States that sent us spiraling down into the worst economic deficit, that we know as the Great Depression (1929-1939). The United States was already on the downward road towards this period of time, the crash just helped accelerate it. The Stock Market Crash happened when the United States was sent into a panic because everyone was putting money on one share that was rising and rising. That share then fell and everyone started pulling out their money from the banks across the United States, but the issue was that the banks didn’t have the people’s money. The banks were investing parts of the deposits that they were receiving on the share that fell. Since the banks didn’t have …show more content…
The Stock Market crashing didn’t just happen out of thin air. Before this could have even been a possibility happening in the United States, the Stock Market was rising up to its peak of the time. Then it began fluctuating in a weird way that it began to become unpredictable on what it was going to do. But, no one paid too much attention to this as they kept investing their money. Suddenly the stock began to fall rapidly and word got out that the banks didn’t have everyone’s money and panic began to set in. This was Thursday, October 23rd, 1929, Black Thursday. Everyone started rushing to the banks to withdraw all their money so that they knew it was secure with them. Black Tuesday arrived and you could hear nothing but the shouts of “Sell! Sell! Sell!” In a …show more content…
Although it wasn’t just the money, this was the main part that cause a domino effect. As one things goes wrong, then the nest and the next. Unemployment rates began to start skyrocketing, until 1933 when about 30% of the workforce was laid off. Also about half of America’s banks had failed by this time as well. (http://www.history.com/topics/1929-stock-market-crash) There was no money to be paying people so jobs were scarce and the jobs that were avalible were low paying and were they jobs that no one wanted, but many did not have a choice. The United States never really fully recovered from this until the arrival of World War II
The stock market crash of 1929 is one of the main causes of the Great Depression. Before the stock market crash many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great depression. More businesses became aware of the difficulties, which caused businesses to not expand and start new projects. This caused job insecurity and uncertainty in incomes for employees. The crash was also used as a symbol of the changing times. The crash lead the American peop...
The stock market crash of 1929 was the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these positive views that the people of the American society possessed, people hardly looked at the crises in front of them.... ...
Firstly, the stock market crash in the late 1920s was one of the main factors that contributed to the onset of the Great Depression. The common goal of many Canadians in the roaring twenties was to put behind the horrors and doubts of World War I, and focus on what was to come in the near future. However, on October 29, 1929, the Stock Market in New York City experienced one of its worst days of all time. The catastrophic impact that the stock market crash had was enough to shift the world in the direction of an economic downfall. The rapid expansion of the 1920 stock market caused the market to hit an all-time high.
There is no doubt that the stock market crash contributed to the great depression, but how? One way that the Crash contributed to the depression was the loss of money it caused to the average man. It is believed that in the first day of the crash almost a billion dollars were lost, this took a large amount out of the pocket of the common man. Without this money people were unable to purchase consumer goods, which the United States economy was based on. Another way the Crash contributed to the depression was the loss of confidence in the market. When t...
On Thursday, October 24th, 1929, people began to sell their stocks as fast as they could. Sell orders flooded the market exchanges. (1929…) This day became known as Black Thursday. (Black Thursday…) On a normal day, only 750-800 members of the New York Stock Exchange started the exchange. (1929…) There were 1100 members on the floor for the morning opening. (1929…) Furthermore, the exchange directed all employees to be on the floor since there were numerous margin calls and sell orders placed overnight. Extra telephone staff was also arranged at the member’s boxes around the floor. (1929…) The Dow Jones Average closed at 299 that day. (1929…)
Post the era of World War I, of all the countries it was only USA which was in win win situation. Both during and post war times, US economy has seen a boom in their income with massive trade between Europe and Germany. As a result, the 1920’s turned out to be a prosperous decade for Americans and this led to birth of mass investments in stock markets. With increased income after the war, a lot of investors purchased stocks on margins and with US Stock Exchange going manifold from 1921 to 1929, investors earned hefty returns during this time epriod which created a stock market bubble in USA. However, in order to stop increasing prices of Stock, the Federal Reserve raised the interest rate sof loanabel funds which depressed the interest sensitive spending in many industries and as a result a record fall in stocks of these companies were seen and ultimately the stock bubble was finally burst. The fall was so dramatic that stock prices were even below the margins which investors had deposited with their brokers. As a reuslt, not only investor but even the brokerage firms went insolvent. Withing 2 days of 15-16 th October, Dow Jones fell by 33% and the event was referred to Great Crash of 1929. Thus with investors going insolvent, a major shock was seen in American aggregate demand. Consumer Purchase of durable goods and business investment fell sharply after the stock market crash. As a result, businesses experienced stock piling of their inventories and real output fell rapidly in 1929 and throughout 1930 in United States.
The Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on October 24, 1929 and the downfall ended in July 1932. I always wondered what caused this calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and huge fortunes were lost. Now I can figure out just why.
However, in 1929 when stocks had soared to an all-time high, in September they plummeted. This day in history is known as Black Thursday and is remembered as the Wall Street Crash of 29. The crash hit people's interests hard. and Americans all over lost a lot of money. Banks had to spend all of the money they had on regaining the economy, and agricultural needs.
When “Black Tuesday” struck Wall Street on October 29th, 1929 investors traded 16 million shares on the on the New York Stock Exchange in just a day which caused billions of dollars to be lost and thousands of investors who got all their money wiped out. After the fallout of “Black Tuesday” America’s industrialized country fell down into the Great Depression which was one of the longest economic downfalls in history of the Western industrialized world. On “Black Tuesday” stock prices dropped completely. After “Black Tuesday” stock prices couldn’t get any worse or so they thought but however prices continued to drop U.S fell into the Great Depression, and by 1932 stocks were only worth about 20 percent of their value. Due to this economic downfall by 1933 almost half of America’s banks had failed. This was a major economic fallout which resulted in the Great Depression because it caused the economy to lose a lot of money and there was no way to dig themselves out of the hole of
Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression. There have been many issues that caused the stock market to crash. One major effect on the Great Depression was the current state of agriculture.
Devastation and desperation started on Thursday, October 24, 1929. There was a strong sense of panic in the air at the Stock Exchange. The stocks were dropping, alarmingly fast; the worried American tried desperately to keep their savings. Markets began to steady again on Friday and Saturday only to sweep back down the following Monday. By Tuesday the twenty-ninth all doubt was erased, many Americans lost everything they had on Black Tuesday (Andrist and Stillman 190). President Herbert Hoover made a decision and refused to provide emergency relief. Hoover believed that it was “strictly a state and local responsibility.” Most local organizations were far too small to handle this big of a situation (Andrist and Stillman 193). America needed a change, a change that would come at the next election time.
The black Tuesday, October 29th, 1929 has been identified as the symbol of the Great Depression. Stock holders lost 14 billion dollars on a single day trade, and more than 30 billion lose in that week, which was 10 times more than the annual budget of the Federal government.[ [documentary] 1929 Wall Street Stock Market Crash
After the stock market crashed, very few people invested in stocks since there was very little money to be made, and stocks were on average only 20% of their 1929 peak value. Since far less people were investing, more people became worried about paying back their loans to the bank and withdrew large amounts of money or even their entire life savings in order to pay back their loans (" The Stock Market” 3). This lead to an exponential decline for banks and other financial institutions. By 1933, 11,000 of 25,000 United States banks had failed, and since the Federal Government had not yet created deposit insurance many people lost their entire life savings (" Franklin D. Roosevelt Creates” 1). Since all economic classes were growing substantially poorer there was little to no money to be spent on luxuries causing consumer demand to plummet and many business started to fail (" The Stock Market Crashes” 4).
When you hear the word, stock market a distaste arises in your mouth. Most people blame the stock market and brokers to be stealers. The stock market for most people is an organization that helps the rich get richer and increase their company revenue. Stating this raises questions to things such as what causes the market to crash then and why does it affect the poor so badly. Also, most people think that the rich people in poor in the stock market get greedy causing the market to crash.