Why Did The Stock Market Crash

Why Did The Stock Market Crash
On October 24, 1929 the Stock Market Crashed causing the economy to fall. This brought the nation to its lowest point, called the Great Depression.
This had a huge negative effect on the United States and on many families. Most of the United States capital was represented by stocks and when it
crashed most of the money was gone and the economy plunged. The Stock Market crashed because Americans thought it was a quick and easy way
to get rich. They were caught up in the fact of living wealthy and not having any struggles.1 People that have invested in the stocks and owned
shares sold them to make money. Inexperienced investors expected to get wealthy quick in the growing market. This was ineffective because the
shares didn't sell for much. Stocks fell from $2, $5 and $10 and plunged $11 billion in the first 3 hours of trading. On October 29, 1929 (Black
Tuesday) one of the biggest booms happened and the Market fell to the lowest point. ... Show more content on Helpwriting.net ...
Families were torn apart and businesses were torn financially. Many businesses shut down because they didn't have enough money to keep going or
people didn't have enough money to keep them in business. If the businesses didn't have enough money than they couldn't pay their employees and
many people lost their jobs. This was hard on families and supporting their family would be difficult without any income coming in they wouldn't be
able to buy food or even pay for their rent. The crash had an impact on every citizen and negatively brought down everything they had to offer. One
individual named George Mehales lost everything he had because of the crash. Even Banks were affected because they invested in the market and lost
money. People panicked and ran to get money fearing that they would run out of money and took their savings out. The whole country was in tyranny
and sorrow because everything seemed as if nothing will ever get better and it was the
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The Stock Market Crash Of 1929
The Stock Market Crash of 1929 "started" on the 24th of October 1929 with 12'894'650 shares being traded; this is the same day that Richard
Whitney went to the stock exchange and bought targeted shares in an attempt to stabilize the stock market. As will be made evident, this did not
work. In fact, an even worse day, dubbed "Black Tuesday", occurred on the 29th of October where 16'410'030 shares were traded. From the week of
October 23rd to 31st the panic settled in and a total of 70.8 million shares were traded. This crisis, beginning in the United States, rippled across the
whole world given that it was interconnected through the gold standard. The Dow Jones Industrial Average had gone from a high of 386 points to a
low of 40.56 points by 1932. In fact, according to Dietmar Rothermund's study of the global impact of the economic crisis, "all major factors
contributing to the depression can be traced back to the United States of America". As a matter of a fact, the historic loss of 30% of the United States'
real GDP from 1929 to 1933 was the wake up call that the economy needs to be controlled. This loss is what led to unprecedented levels of government
intervention and the reshaping of Western Civilization economics with theNew Deal and following similar regulations.
The Stock Market Crash led to pioneering changes in many aspects of the American government and society; one of those changes was the discontinued
use of the gold standard. The gold standard linked the

The Effects Of The Stock Market Crash Of 1929
It is inevitable that a country will have a continuously fluctuating economy; however, this can potentially be dangerous when economic growth drops
precipitously as it did in 1929. Even today, there is controversy regarding the causal events leading up to the stock market crash of 1929. The question
most debated is– which factor was the greatest contributor to causing the crash? Many think the answer is simple, for example, unemployment. On the
contrary, the answer is quite complex because there were many interconnected causes. When answering this question, it is first crucial to analyze the
causes of the crash and the causes of the depression that followed the crash. Many people combine the causes of the stock market crash and the ... Show
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In addition, effective advertising led to more consumer purchases. Consumers were able to purchase more luxurious items because wages of the
urban middle class workers increased. People could afford mass produced goods like radios, washing machines and cars. This materialistic time
period slowly took a turn for the worst. Various factors began revealing the hidden structural problems of the 1920s. For one, overproduction
became a major problem, as efficiently supplied goods outstripped their demand. Other problems included income inequality, with only 1% of the
population wealthy enough to invest in stocks. This income gap widened over time; by 1929 the stock market was many times its value in 1921.
Furthermore, easy credit led to growing debt of consumers and companies. Specifically, people bought stocks on margin while companies took on
loans to expand their production. Therefore, many banks in the U.S grew from small to medium sized, as their loan portfolios increased. The first
sign of trouble in the 1920s was when several rural banks failed, due to farmers' failure on agricultural loans, combined with weak reserve
requirements. This developed into a major problem because there was no lender of last resort addressing the needs of the failing banks. In addition,
investors drove up stock prices even with low earnings per share, in part based on companies' unrealistic

The Stock Market crash of 1929 was devastating tragedy. "In a matter of hours, thousands saw their fortunes sink, turning previous paper millionaires
into destitute paupers." Back in the roaring twenties, the American society was seen as very prosperous. Many citizens were becoming millionaires
each day due to their 'promising' Stock Market. What they didn't see coming was the great fall of their economy because of a fault in their banking
systems and stock market. Several diverse economic factors led to the Stock Market crash of 1929. Even though they had many warnings of the overall
destruction of their stock market, such as excessive loans, buying on the Margin, expectations, Agricultural Recession and the weakening American
Banking System, ... Show more content on Helpwriting.net ...
People took out numerous amounts of money in loans to invest in stocks and shares in the Margin causing all their wealth to be gambled on the
economy. The citizens in the roaring twenties expected the Stock Market to be bullet proof. The decrease in farm prices and production caused long
lasting damage to the American banking system and the citizens who used it. Mass production caused demand for product and prices to dramatically
fall all while inflation decreased the supply of money. Finally, the Federal Reserve allowed the country's money supply to decrease and created major
liquidity

The Causes Of The Stock Market Crash Of 2008
In Frontline's The Meltdown, the causes of the stock market crash of 2008 came into discussion. The topics regarding Bear Stearns, the Lehman
Brothers' and their collapse, and the huge bailout made in results to the market crash. There were great points being made on the mistakes Henry
Paulson and Ben Bernanke did not view from their perspective, which in turns were the problems that made up the crash.
It was not until 2007 when foreclosures occurred more and became prominent, especially since the last market crash during the Great Depression. As
Gretchen Morgenson of the New York Times discusses, Bear Stearns was known for his great plays with mortgages on Wall Street. People who
believed Stearns would pull the right decisions became scared as the values of their assets were decreasing. This created a necessitated attitude
towards money since their was money being borrowed fighting against the collaterals, in turns the assets. When the assets started to decline, you
need to start paying back money to those you have borrowed from. Roughly $1.6 billion was discarded in Stearns' decisions, which was the start to
the stress he would obtain from the crash. This enabled the world to see how weak the market was, especially those who had a role within the market.
When banks also saw the weakness mortgage companies had developed, they decided to raise the cost of borrowing money from them, creating doubts
if these mortgage firms, such as Stearns, would be able to solve this

Essay On The Stock Market Crash Of 1929
The Stock Market Crash of 1929
The stock market crash of 1929, which is considered most of the beginning of the U.S Great Depression, was an event that modeled the setting of the
1930s politically and socially. In the 1920s, the U.S. stock market underwent a popularity of stock trading. ("Stock Market Crash of 1929.") By the time
it reached its peak in August 1929, the U.S economy wasn't stable enough to handle the rapid expansion of the stock market. On October 29,which is
Black Tuesday, thousands of investors traded 16,410,030 shares on the New York Stock Exchange hit Wall Street in a single day, left thousands of
people in debt and lower purchase of good. ("Stock Market Crash of 1929.") The Stock Market Crash was mainly caused by structural failure, excessive
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However, it is too easy an answer. Economic historians still can not agree precisely on why it occurred and why at that moment. John Kenneth
Galbraith (1961) implies that there was a speculative orgy and that the crash was predictable: "Early in 1928, the nature of the boom changed. The
mass escape into make–believe, so much a part of the true speculative orgy, started in earnest." (Bierman) Despite the false version of economy from
people, several structural failures created an invisible financial danger among of each aspect of life. At some point, the key point was the selling
panic that started and the crash resulted. However, this is one of the most significant financial crisis in the whole world was followed by a severe
worldwide economic depression, the Great Depression. The U.S. politicians and industry leaders had continued to issue optimistic predictions for the
economy. But the influence of the crash deepened, confidence fell and many citizens lost their life

Effects Of The Stock Market Crash Of 1929
The 1920s went into American History as the most controversial decade (Geisst, 2012 p. 146). Nobody could have foreseen at the beginning of 1929
what importance this year would have for the financial market (Wigmore, 1975 p. 4).
The booming 20s were drastically ended by the Stock Market crash of 1929. It went down in history as one of the worst economic downturns (Termin,
1976 p. xi). The panic at the stock market which led to many people trying to sell their stocks started on Wednesday, October 23 (Geisst, 2012 p. 185).
Thursday, October 24, 1929 has gone into history as "Black Thursday" (Geisst, 2012 p. 185). The whole stock market lost 30 percent of its value before
the end of the year 1929 (McGrattan & Prescott, 2001). Unfortunately, ... Show more content on Helpwriting.net ...
179). De Long and Shleifer (1990 p. 3) estimate that the stock market in 1929 was one third overvalued. Common stocks seemed to be running out
in 1929 (Galbraith, 1977 p. 69). Therefore because of the shortage of stocks, prices rose to sky high levels (Galbraith, 1977 p 69). It cannot be
proven that stocks were overrated at the time of the crash. Yet there is prove that speculative gamblers are not to be blamed for the crash.
Knowledgeable investors were just too optimistic in the stocks and therefore this led to the burst (Bierman, 1991 p 175). Laura Agadoni supports this
cause in her research paper (Agadoni, n.d). It was not seen at first hand in October 1929 if stocks were overvalued. The market functioned well;
investors and speculators were buying stocks (Bierman, 1997 p.

Essay On The Stock Market Crash
Essay 5: Cause And Effect over "The Stock Market Crash" As America became more populated in the cities, the necessity of products and food
came along. Poverty was still visible. However, it was until the 1920's that America became wealthy and prosperous. The stock market crashed on
October 23, 1929, because of overproduction of goods and excess speculation leading to one of the darkest times in America. In the Jazz Age or
Roaring 20's, America's financial situation was phenomenal. From all the other nations America was above. People began incorporating more and
more into the cities getting diverse and better jobs. Families grew at a steady rate leading them to buy all kinds of products. All consumer goods,
industries, and transportation means grew exponentially.... Show more content on Helpwriting.net ...
He created a skim to help people buy cars with money they did not have. Not only with cars, but he taught them how to make money through
speculation. This kept the economy steady and it spiked again. People bought stock borrowing over 2/3 of its value from the bank, selling it after
a couple of months, giving the bank its money back and keeping the profit. People were making a lot of money with this process. However, it was
vowed to fail soon, everything as good and easy as this was, always did. On August 27, 1929, speculation reached its peak. Vast amounts of people
learned to speculate, and the numbers were so high that there were more people selling than buying. Investors grew uneasy. All people wanted was
cash, cash, cash. On October 23, 1929, Blue Chip stocks plummeted, and in just two hours, ten million dollars were wiped out. A bank tried mending
the problem buying the stock at its original price, but days later no one could solve the problem. The total losses were thirty–three billion in a

Stock Market Crash Of 1929 Research Paper
Causes of the 1929 Stock Market Crash by Hassan Ali
All through the era of the Roaring Twenties, a lengthy and substantial boom took stock costs to steep levels that were never experienced in the past.
Within the years of 1920 to 1929, stock prices duplicated more than four times in worth. Numerous investors were certain that throwing money in the
stock market was a straightforward play and this resulted in a plethora of people borrowing funds outside of their budget in order to further invest
money in the market. The 1929 Stock Market Crash was a pivotal time in our country's history. It was the consequence of economical shortcomings and
failures in our foundation. Before this crash, America was in its most prominent time of accomplishment; ... Show more content on Helpwriting.net ...
It was a time of amazing economic development, and relatively few Americans mulled over what was yet to come. Stock shares continued to rise and
individuals felt they would keep on doing as such. The average gain for each stock share expanded by 400% in the midst of 1923 to 1929. Everything
was going great until Black Tuesday, which was the beginning point of the stock market crash. The defining moment left a large number of individuals
in mass debt. Purchasing stock through credit was something new, known as purchasing "on margin". This development granted individuals who did
not have the money to purchase stocks in totality the ability to immediately buy–in for full shares. All they had to do was put down ten to twenty
percent and then acquire the rest of the expense from their stockbrokers. Buying stock this way, allowed anyone who invested in the stock market to
have an advantage in their own stock ventures, directly resulting in a larger return of money because if the stock went up by even a little rate, the
speculator got an expanding benefit of profit. This permitted more cash to be put into stock options, expanding their value. Many individuals
benefitted from this "on margin" purchasing power and lots of them even became millionaires over short periods of time. But this new system also
posed a very dangerous risk. On the off chance that the cost of shares dropped lower than the credit sum borrowed, brokers

During the 1920s the United States boomed in stock markets. Millions of Americans began to purchase stocks, causing the market to dramatically
increase in value. but for the economy so many Americans invested so much money into the stock markets it started to inflate in price. Which it
worried shareholders, but the shareholders heard rumors that the stock markets were going to crash. Many were afraid that the stocks would be
worthless. As stocks climbed in price many Americans believed that they could obtain a lot of money even if they only had one or two stocks. But
unfortunately, for many potential investors, these people did not have enough money to afford shares of stock. The credit boom was one of the ways
that the stocks went into depression.

Stock Market Crash Essay
Hawkins argued that there were problems that were present with corporate financial reporting before the passage of securities regulation in the 1930s.
Hawkins explained that the New York
Stock Exchange was reluctant in imposing disclosure requirements on listed firms due to the opposition of firms with controlling shareholders, often
families, preferred not to be bound to disclosure information. Also because of weak disclosure requirements, there was a substantial amount of unlisted
(industrial companies) trading transactions on the New YorkStock Exchange.
Due to state laws being vague, corporate charters were able to avoid the question of management's financial reporting responsibility. Public opinion also
expressed no opposition to
management ... Show more content on Helpwriting.net ...
The leverage that heavily relied on the hopes of huge returns by investors before the great crash were in reverse which removed all the value from the
common stocks of a trust. This reverse leverage that was occurring would essentially cause an interruption in dividends causing a default on the bonds,
bankruptcy, and the collapse of the corporate structure. After reading both of these articles I was able to see that the 1929 Stock Market crash was a
consequence of numerous economic imbalances, poor corporate structure, and the lack of regulating corporate financial reporting. Due to the
encouraging strength of the economy, people assumed the stock market was a sure way to make a killer profit. Prior to the crash, I believe much can
be blamed on over enthusiastic speculations and false expectations by investors, due to
information being retained by corporations, causing stockholders to be misinformed and easily manipulated. The stock market was made to look like it
could offer the potential for making huge profits, motivating investors to buy shares on risky impulses. I believe these were some essential factors that
unfortunately caused the stock market to get caught up in a speculative

1987 Stock Market Crash
Lessons Learnt in Engineering and IT––Background Research Report Textual Analysis
"A Brief History of the 1987 Stock Market Crash with a Discussion of the Federal Reserve Response" is a documentation written by Mark A.
Carlson and was published in November 2006. Mark finished his B.S. in Economics from the University of Minnesota in 1996 and further completed
his Ph.D. in Economics from the University of Berkeley in 2001. The author's nationality is American and currently working as Principal Economist
at the Federal Reserve. The source is searched from an official federal website through google scholar. Therefore, it can be said that the contents of the
following documentation are academically reliable. The purpose of this textual analysis is to determine if the document is acceptable for using in
Lesson Learnt case study. The analysis begins with assessing the dependability of the following document and going through a brief overview of the
main content and afterwards relating it to the semester topic and clarifying differences in research.
The topic of the document is to review the events corresponding to the crash, a brief history regarding the factors contributing to the severity of the 1987
stock market crash and several solutions carried out by the federal reserve in the time of crisis throughout the event. The initial information was given by
Moreover, the stock market crash in 1987 was a shock of stability of the financial system, not only because of the substantial price drop but also, we
can clearly see that our functioning systems are significantly flawed and can later be perfected for a better future. Therefore, we learnt more than
technical flaws, further improvements of our daily systems have to be made for a better

What Caused The Stock Market Crash
Since the creation of stock exchanges in the 13th century, the stock market has played a vast role in our history. It's the aggregation of buyers and
sellers of stocks or shares; these may include securities listed on a stock exchange as well as those only traded privately. The biggest crash in
history took place in 1929. Depression consumed the people and the economy was at its nadir. In 2008, another crash took place. Still today we can
look back and see how it has shaped the world in a negative way. Astock market crash has been defined as a sudden dramatic decline of stock prices
across a significant cross–section of a stock market, resulting in a significant loss of paper wealth. Crashes are caused mainly by inadequate
management of the stock market. The 1929 Stock Market crash was the result of multiple economic disproportions and lack of organizational structure.
Many people think that the Great Depression was caused because of the crash; however, that is an entirely misled idea. The depression took place just
after the crash, meaning it was not really its cause but the spark to the fire. Just before everything happened, the market was as high as it could ever be.
Just as people could feel the side effects of the crash back in 1929, still today we can feel the effects of the crash in 2008. When the recession
occurred, about 9 million people had lost their jobs by 2009 in the United States and housing prices had fell to their lowest point. It has been seven
years since the market has gone down that severely; however, it has recovered greatly since the crisis

Throughout most of the 1920's there was a large boom in the stock market. By August 1929, there was massive expansion and stock prices reached
their peak. In the words of PBS, "A boom took stock prices to peaks never before seen" (PBS 1). However, all good things eventually come to an end.
What must have felt like over night, the stock market crashed and this would later be known as one of the most devastating economic downturns in
U.S. history. The Stock Market Crash of 1929 was so significant but to this day people question why it occurred, how it affected the public, how the
crash was eventually resolved, and how it affected the U.S. economy for decades to come. I hope to analyze information about the Stock Market
Crash of 1929 provided by economists, the government, and more to not only discover answers to the questions above, but also understand why, in
hopes of preventing another event of this magnitude from occurring again. Just about everyone has a reason for why the Stock Market Crashed in
1929. Aside from the views of the average person, Investopedia interviewed several economists who said that, "the market was overbought, overvalued
and excessively bullish, rising even as economic conditions were not supporting the advance" (Pettinger 2). In order to completely understand what that
means, it needs to be broken down and people have to watch what occurred pre–Stock Market Crash.
Essentially what economists are trying to say is that businesses were investing

Essay On What Caused The Stock Market Crash
The stock market crash of 1929 was one of the primary causes of the Great Depression, as reported by many economists. However, the stock market
crash also had underlying causes that could have been prevented. The crash began on October 24th, 1929 and was considered the most devastating
stock market crash in history, in which over 15 million Americans were unemployed. The causes to blame for thestock market crash from most to least
are as follows: The banks that gave loans, the average American, wealthy people and businessmen, the Federal Reserve Board, and the government.
If the banks did not lend money to ordinary people, then debt would not even exist and the stock market would not have crashed. Once the stock
market crashed, the banks ... Show more content on Helpwriting.net ...
Wall Street was in fact dominated by wealthy businessmen, many of which who made millions by solely "playing the market." Indeed, people began
believing that they would be able to do the same; to press a button and the stock would go up ten points. These stocks were also manipulated by the
wealthy when they pooled their money into a secret agreement to buy a stock, inflate its price, and sell it to an unsuspecting public. Again, even
though wealthy businessmen did everything in their power to attract the public, it was the individual's fault for making a poor decision. The second
least to blame for the stock market crash is the Federal Reserve Board. The Board themselves distrusted the boom, as they saw speculation as risky and
dangerous. In fact, the Board had the entire power to ask for government regulation or control of the market, but they refused to do so because the
market was already too dependent on borrowing money. Without the margin, the market would collapse, and therefore, there was no point of the Board
asking for government regulation since the economy was ultimately controlled by Americans'

What Is The Positive Impact Of The Stock Market Crash Of 1929
In the years leading up to 1929, the American economy was thriving and stock trade sales were at their highest peak. The majority of people were
thriving in this newfound success, and had been constantly building off their fortunes. The people of the United States had never lived through such a
time, so experiencing this for the first time they were ignorant of any negative effects that could occur. They never would have expected the economy to
undergo such a drastic change in such a short period of time. According to credible sources, the unemployment that resulted from theStock Market
Crash of 1929 impacted choices and caused financial anxiety and panic. American in the 1920's continuously celebrated and relied on economic
prosperity, ignoring the negative aspects of putting all their attention on the present time in the article "Bernard Baruch's Own Story" by Bernard
Baruch, a first notion of an imminent market crash was described as, "To most people it seemed as though prosperity would never end, that everyone
would simply go on making and spending more and more money" (Baruch 2). They were pushing their possible doubts outside of their minds to focus
on the all–too–obvious positive impacts of the thriving economy. Furthermore, in the article "Firing, Not Hiring" by Nancy Hayes, it states, "People
had started buying things such as refrigerators on credit: they didn't have the money on hand to pay for these goods, but they agreed to make regular
future payments.

The Stock Market Crash Of 1929, By Brenda Lange
On October 29, 1929, America experienced the most calamitous stock market crash in its history. Although some tried to prevent the crash from
getting worse, the fear and panic that so many Americans felt, caused them to make a horrible situation even worse. The 1929 stock market crash
affected America in several ways, causing America to go from a time of prosperity, to a time of strife, leading Americans to lose billions of dollars and
also leading to an increase in homelessness and unemployment rates, leaving America devastated.
Before the market crash, many people were happy and optimistic about the future. Brenda Lange, author of The Stock Market Crash of 1929, wrote that
the time before the crash "was a time of optimism and hope, and the future looked promising." (Lange 12), referring to how people had nothing to
worry about. With a majority of people believing that nothing bad would happen, the small signs of the future crash went unnoticed, leading to a mass
panic when the market first went down, which was a partial cause of the October 29th crash. ... Show more content on Helpwriting.net ...
The author of a personal account had written that he "had about $3000 in the stock market," but after the crash, he "may have had about $62 left"
(Account), losing almost all of his money in the market. He was not the only one, more than "three million Americans were directly affected by" the
crash (Lange 39), while almost everyone else was indirectly affected by the crash. With such a large number of people being affected by the crash,
the "losses were estimated at between $8 billion and $9 billion" (Account). Therefore, all stock prices went down by a immense percentage, causing
citizens and companies alike to lose an extensive amount of money. Consequently, because of the companies' substantial loss, they were forced to cut
back on expenses, such as employee

Who is to blame for the stock market crash? The U.S stock market experienced the worst downfall in history since the Great Depression. Many firm
and banks were avaricious about money, credit crisis, mortgage crisis, and bank collapse. It was unprecedented growth and consumer's debt turned into
a turmoil for many people that had invested their asset in the stock market. The downfall of the stock market crash in 2008 was led by banks, and credit
firms that were lending the money at high interest rate. People were paranoid, and they took the initiative to withdraw their investment and money.
These event directed a financial crisis in which investors and consumer lost an enormous lump sum of money, because banks were concerned with
profit made credit cards, lending mortgages, and high interest rates. (Investopedia, LLC) ... Show more content on Helpwriting.net ...
The American economy is mostly built on credit. Credit can be used to start or expand a business, which can create a lot of jobs. Also, credit is
used to buy a house or a car. However, credit got unchecked and out of control, banks were giving credit to mostly everybody without
acknowledging the consequences. Thousands of people took out loan that they couldn't afford, hoping that when they buy a house they can either
flip the house or make profit, refinance, with low rates and with more equity. People became wealthier in a quickly pace. The brokers had many
reasons why to sell you a house, they just took your words, and determination if you can afford the mortgage. They used their techniques to cut down
sales prices, and made a mortgage package. These mortgage package were group with others mortgages and erased all personal responsibility of the
loan, leading into a deficit and people not paying back their

Stock Market Crash Of 1929 Research Paper
Stock Market Crash of 1929
The Great Crash, also known as the Stock Market Crash of 1929 was the worst economic crash in U.S. history. The 1920s is the most interesting topic
about the United States past that go from life during the beginning of the 1920s which was the prime days for the American people. To go inside the
stock market crash of 1929, which almost destroyed the country and its people. Then learning about the interesting facts about the causes and effects
that the crash brought not only the U.S. but the whole world is mind blowing. Life after the crash of the stock market would ultimately lead to the fall
of the country and the great depression. The stock market crash of 1929 was the worst economic downfall in the history of the ... Show more content on
Helpwriting.net ...
Kimberly Amadeo, a writer for The Balance in an article said, "The crash wiped people out. There were forced to sell businesses and cash in their
life savings." She also said, "You can't have a healthy economy without confidence in the market." This was said, because the market started to take
a harder hit when people were scared of losing all their money, so they took it out of the banks and the market. Thousands of people were fired from
work and could not end up finding a job after. The unemployment rate in the country dropped 25 percent because of people being fired, or people
losing companies. The crash ruined hundreds of thousands of Americans lives and put them out on the street to live. Ultimately the crash led to the
Great Depression, which was the worst depression that any country has ever gone through. The Great Depression lasted from 1929–1939 and the only
way possible for America to pull itself out of it was to join World War

Herbert Hoover 's Stock Market Crash
The 1929 Stock Market Crash "We'd like to thank you, Herbert Hoover/ For really showing us the way/ You dirty rat, you Bureaucrat, you/ Made us
what we are today (www.stlyrics.com)." These lyrics from the musical Annie place the blame for the 1929 Stock Market Crash solely on the then
former president Herbert Hoover. The truth of the matter is that placing the blame for the Stock Market Crash on Mr. Hoover is very unfair. Herbert
Hoover was only one of many causes of the Stock Market Crash. It is easy to try to place the blame for one of the most destructive events in the
history of the American economy on one person, but the real causes lie in the rampant speculation, the lack of regulation of the stock market, and
the questionable ethics of many of the companies and brokers that were involved in the market. Although the 1929 Stock Market Crash is generally
blamed on a few scapegoats, it was actually caused by a multitude of factors, which makes finding a scapegoat impossible. While there may be some
arguments among historians, speculation is obviously one of the major causes of the Crash. Speculation (In the context of the stock market) is the
buying of stocks with the purpose of profiting not from the dividends that the stock pays, but by the fluctuations in the price (Axon 31). Speculation is
often looked down upon by the market as a profession, as it is seen as a form of gambling with possible serious repercussions. The secret is that
speculation is actually

Stock Market Crash And The Great Depression
As agonizing as the stock market crash was, at the time, people thought that this recession would not last long (Rauchway 30). To exacerbate the
situation, in 1930, two significant events occurred, the first was the passage of the Smoot–Hawley Tariff, which practically halted global consumption,
and second, was the spread of a severe drought in the Great Plains that scorched the farming sector (Himmelberg 9). The afflictions of the farmers
inundated the banking sector, and with the dwindling economy, thousands of banks collapsed (Himmelberg 10). Some of these bank closures were
results from "bank runs", in which savings were withdrawn by crowds of depositors, due to fear and panic (Himmelberg 10). When one of New York
City's major banks,

The Stock Market Crash: The Great Depression
Stock Market Crash/The Great Depression
In late October 1929 investors in New York City began to panic. Stocks that they had bought at high prices began to drop. More and more investors
sold their stocks at whatever price they could get. Over two days, the value of companies being traded on the stock exchange fell almost 13 percent on
Monday and another 12 percent the next day. That day became known as "Black Tuesday." Fortunes were wiped out. Thestock market had crashed. All
across the country, and all around the world, people paid attention to the news closely. Some investors killed themselves. Millions of people from all
over the world who owned stocks waited helplessly as stock values crashed. After the crash, the amount of goods and ... Show more content on
Helpwriting.net ...
By 1933, when the Great Depression reached its lowest point, 15 million Americans were unemployed and nearly half the country's bank had failed.
The Great Depression was caused by serious weaknesses in the economy. A few of those weaknesses were, drought conditions, american economic
policy with Europe, and bank failures. The Great Depression was made worse by environmental destruction. A years long drought fastened with poor
farming practices, which created a extensive region from southeast Colorado to the Texas panhandle that came to be called the Dust Bowl. Massive
dust storms choked towns, killing livestock and crops, and sickening people. Thousands dashed the region as the economy collapsed. American
economic policy with Europe was also a cause of the Great Depression. The government was forced to act. Promising to protect United States industry
from overseas competitors. A number of American trading partners retaliated by imposing tariffs on United States made goods. As a result, world trade
fell by two–thirds between 1929 and 1934. Bank failures was also a cause of the Great Depression. Nearly 700 banks failed in waning months of
1929 and more than 3,000 collapsed in 1930. Federal deposit insurance was unheard of. Instead, when banks failed, people lost their money. Others
were alarmed, causing bank runs as people critically withdrew their money, forcing banks to close. By

Black Thursday Stock Market Crash
In early 1928 the Dow Jones Average went from a low of 191 to a high of 300 in December of 1928 and peaked at 381 in September of 1929. 1929В…)
It was anticipated that the increases in earnings and dividends would continue. (1929В…) Price to earnings ratio's rose from 10 to 12 to 20 and higher
for the market's favorite stocks. (1929В…) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them
to be cheap. (1929В…) On October 3rd, the Dow Jones Average began to drop, declining through out the week of October 14th. (1929В…) On the
night of Monday, October 21st, 1929, margin calls were heavy and Dutch and German calls came in to sell overnight for the Tuesday morning opening.
(1929В…) On Tuesday ... Show more content on Helpwriting.net ...
Meanwhile, the overall price level dropped by about 1/3. Many people blamed the crash for the economical collapse. Some people held responsible
were President Hoover, brokers, bankers, and businessmen. The cause of the depression cannot be linked to one individual or even a group of people.
It is also unlikely that the crash of the market would have been large enough to lead the US economy into the depression and to sustain the downward
spiral in business activity. (1929В…) Why People Invested in the Stock Market During 1929, people invested in the stock market for 5 major reasons.
The first was that the market was considered an easy way to get rich, quick. Although, about 4 million Americans, a small amount, invested in the stock
market at one time. The constant influx of new investors coming in and old investors moving out ensured that new money was always flowing
around. (1929В…) Another reason was higher wages. This meant that everyone in America had extra money to put into savings or invest in the
market. The 3rd reason was that at this time, money was made more readily available, from banks, at a lower interest rate to more people. Some
economist debated that this influenced the stock market, it is conceivable that people took loans to buy more stock. (1929В…) The fourth reason is
that industry was over–producing, in anticipation of selling

stock market crash Essay
The Stock Market crash of 1929 has been looked at as the greatest symbol of depression is our countries history. Although the Stock Market crashing
had a huge effect on the beginning of the Great Depression, there are still factors to consider when looking for a source to blame. It's hard to put
responsibility on the stock market for something so huge and disheartening. The Great Depression is seen as a slippery road downward, not a sudden
jolt into hopelessness.
The Stock Market in the 1920's had consistently seen prices climb over the last few years. By the fall of 1929 the prices of stock were severely
overpriced and unaffordable. When stockholders saw the severity in the prices they all panicked and began ... Show more content on Helpwriting.net ...
The banking system of the 1920's is not what it should have been. Today we have insurance on the money we put in the bank, so if that bank should
go under, we can still have our money. This was not the case in the 20's. If your bank closed, and many of them did, you lost all the money you had
saved. No one could help you and many families ended up on the street due to this loss.
Bread lines were now crowded as people tried any way they could to feed themselves and their children. Suicide was now at a high as well. Many
businessmen or farmers and really anyone else who had lost their job or business due to the times often committed suicide as the easy way out. The
way out of the Depression was a long road ahead.
FDR, in my opinion, is mainly the reason that the Great Depression ended. FDR would hold "fireside chats" everyday on the radio. This was very
consoling for a country who thought they were headed nowhere. It was nice to hear a man of power tell you that everything was going to be okay. He
gained even more great respect after announcing the New Deal.
The first New Deal was aimed towards business recovery. He insisted that the banking industry now be regulated and developed F.D.I.C. that would
insure your deposits up to $5,000. This is the same system that we use today.

Stock Market Crash Of 1929 Essay
In 1929 America experienced one of the worst and the first crash of the stock market. This also lead to what we call the great depression, a time of no
economic growth, and to make matters worse we also began to go through the dust bowl times. At that time the market had little to no implemented
regulations. President Herbert Hoover at the time blamed the stock market crash on the lack of regulation. Today, the market has many more
regulations than there were back then. Some people and presidents want less or more regulation on the market. So which is better? Regulation all the
way! Regulation gives increased security, restored trust, political capital, and path dependency. Well how did the Housing crisis happen in the first
place? Well what banks were doing was looking for fast short term profits. To get these profits banks had to give out "sub
–prime mortgages". Sub
prime mortgages are basically loans given to people who would have a rather hard time paying back the cash. Because of this banks were able to
increase interest rates. When the banks raised the interest rates what they did was create a hypothetical bubble that was bound to burst. When this
happened banks began to fail. ... Show more content on Helpwriting.net ...
They're either really volatile or not so much volatile. What is also presented is a way to fix how financial institutions are regulated. Paccagnella states
"A common element to several alternative solutions to command & control approach is the partial re–allocation of regulatory power from Central State
to other subjects...defined as auto–regulation and co–regulation." Further into the book Paccagnella discusses how making institutions regulate
themselves and have a greater regulation oversee, could potentially attract these large financial institutions and begin to take up some forms of more

The cause of the crash in the stock market in 1929, was an incident that occurred on October 29, which was called Black Tuesday. Investors traded
16 million dollar of shares toward the New York Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or
their jobs. one of the major reason why was that car and other factory produced certain quota of cars. during the great depression people who were
rich is now poor and the poor and the poorer. people were living in terrible condition.
The event that lead up to the stock market crash of 1929 was a result of various economic imbalances and structural failings. these are some of the most
significant economic factors behind the stock market crash of 1929.
During 1920s known as "The Roaring Twenties" was the time when America was over dependent on production, automobiles, etc were the leading
industry, there was divided line between rich and poor. 60% of the population was living below poverty levels. There was uneven distribution of
wealth, 6% of the wealthiest people in the country were getting most of American income and, 33% of the income and richest, 1% owned half of the
nation's wealth. While the united states were doing extremely well during the 1920s, most of europe is still dealing with the devastation of World War
I. America soon become a superpower world bank and, europe started borrowing and buying less of American products. While there was a

Stock Market Crash of 1929 Essay
The United States signaled a new era after the end of World War 1; an era of hopefulness when many people invested their money that was under the
mattresses at home or in the bank. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.
First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated
but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long–term investment because the
boom changed the investor's way of thinking.
During 1928, the stock market was common among any class of the roaring twenties. Ordinary people talked about and many made ... Show more
content on Helpwriting.net ...
As margin calls were issued a panic hit across the country and the prices began to drop. Banker Charles Mitchell stopped the panic by reassuring that
his bank would keep lending money. Although, it did not stop the big crash in October when many others like Mitchell tried the tactic of reassurance.
There were additional signs by the spring of 1929 signaled a serious setback in the American economy. There were also a few trustworthy people
warning about the future, big crash. As a month or two passed by, those people who warned the investors were labeled doubters and neglected. When
the market surged forward throughout the summer of 1929, the mini–crash and the pessimists were both almost forgotten. The stock prices reached
their peak from June through August of 1929. The constant increase of stocks was unavoidable to many. "Stock prices have reached what looks like a
permanently high plateau," economist Irving Fisher stated what many investors desired to believe. The stock market reached its highest with the Dow
Jones Industrial Average closing at 381.17 on September 3, 1929. The market started its downward drop few days later. The prices vacillated during
September and into October until the final downfall on Black Thursday. Thursday, October 24, 1929, the market prices dropped.
The majority of people started selling their stocks and brokers sent out margin calls. People throughout the country watched the ticker (stock

The 1929 Stock Market Crash In early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928
and peaked at 381 in September of 1929. (1929В…) It was anticipated that the increases in earnings and dividends would continue. (1929В…) The
price to earnings ratings rose from 10 to 12 to 20 and higher for the market 's favorite stocks. (1929В…) Observers believed that stock market prices in
the first 6 months of 1929 were high, while others saw them to be cheap. (1929В…) On October 3rd, the Dow Jones Average began to drop,
declining through the week of October 14th. (1929В…) On the night of Monday, October 21st, 1929, margin calls were heavy and Dutch and German
calls came in from overseas to ... Show more content on Helpwriting.net ...
(1929В…)
The Crash and The Depression After the crash, production fell nearly 50% from the business cycle peak in August 1929 to March 1933.
Meanwhile, the overall price level of stocks dropped by about 1/3. Many people blamed the crash for the economic collapse. Some people held
responsible, fairly or not, were President Hoover, brokers, bankers, and businesspersons. The cause of the depression cannot be linked to one
individual or even a group of people. It is also unlikely that the crash of the market would have been large enough to lead the US economy into the
depression by itself and to sustain the downward spiral in business activity. (1929В…)
Why People Invested in the Stock Market During 1929, people invested in the stock market for five major reasons. The first was that the market was
considered an easy way to get rich quick. Although about four million Americans, a small amount, invested in the stock market at one time, the
constant influx of new investors coming in and old investors moving out ensured that new money was always flowing around. (1929В…) Another
reason was the higher wages of the ordinary workers. This meant that everyone in America had extra money to put into savings or invest in the market.
The third reason was that at this time, money was made more readily available from banks, at a lower interest rate, to more people.

This research paper will talk about stock market crashes. How well do financial markets forecast and impact the economy? The 3 main topics in the
research paper are the crashes of 2008, 1987, and 1929. The first topic for each crash will be about how much money was lost and what the effect was
on the people. The following will be talking why the crashes happened and the impact to the economy. The paper will conclude with a recommendation
on how to forecast stock market crashes and government intervention that balances the risk and the need to invest for growth. Every crash people
lost thousands sometimes millions or billions. In 2008 they lost 10.2 trillion dollars and it was the biggest crash. Although the market started to
crash on October1st 2008, the black week began on October 6th and lasted five trading sessions. During black week the Dow Jones Industrial
index would fall 1,874 points or 18.1%. The same week the S&P500 fell more than 20.1%. It became the biggest crash of all time. On to that the
government add 250 billion to the banks so the banks won't collapse. There was trouble in the housing markets and credit markets because of the
2008 crash. It became a worldwide recession and many people lost their jobs. It took many years all the way to 2012 for the markets to recover the
value lost. ... Show more content on Helpwriting.net ...
Once the housing prices started to come down, the bad financing became an issue as the big banks were starting to run out of money. First the
government thought that it wouldn't effect the rest of the economy. But then one big bank went bankrupt and the government had to bail out the rest of
the biggest banks to avoid a total collapse of the economy. They even had to bail out the top there car manufacturers, GM, Ford and Chrysler by giving
them money. Otherwise millions of people would have lost their

The United States signaled a new era after the end of World War I. It was an era of hopefulness when many people invested their money that was under
the mattresses at home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the
1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as
more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had
started by 1928. The stock market was no longer a long–term investment because the boom changed the investor's way of thinking ("The Stock Market
But, unfortunately, the market started its downward drop few days later. The prices vacillated during September and into October until the final
downfall on Black Thursday. Thursday, October 24, 1929, the market prices dropped again.
The majority of people started selling their stocks and brokers sent out margin calls. People throughout the country watched the ticker (stock
pricing machine) as the numbers meant their fate. The prices were falling down so quickly that the ticker fell behind. Stunned at the sudden
crash, a crowd gathered outside the New York Stock Exchange on Wall Street. Rumors spread that people were committing suicides, but none of
them was true. It was a great relief when the panic decreased later as the day progressed. Large sums of money were invested by group of bankers
just to convince others to stop selling their stocks. By the end of the day, people started buying stocks at "bargain prices." On October 24th, double
numbers of shares were sold, breaking the previous record. The stock market fell again four days later. An unexpected drop in the stock prices
through a large section of the stock market is called a stock market crash. Usually during high economic periods, become greater than their original
value, but if this fades; then the market investors would have to sell their stocks at a lesser value. As the stock prices decline, panic sales can set in
causing the market to

Stock Market Crash Of 1929
Stock Market Crash of 1929 The United States was experiencing great optimism and economic growth prior to the stock market crash of 1929. The
conclusion of World War I in 1918 ignited this exciting time known as the "Roaring 20's." The key economic factors that contributed to this time is
that business' were exporting to Europe (which was still rebuilding from the war), unemployment was low, and automobiles and other goods were
spreading across America creating jobs and efficiencies for the economy. During this time of economic growth, the securities market experienced a
surge in activity. This was primarily due to investors buying on margin, which is essentially credit, as ratios as high as three to one. This meant that
investors were putting down one dollar of capital for every three dollars of stock they purchased. Even though a lot of people during this time made
enormous amounts of gains, this still meant that a loss of a third of the value of the sock would wipe them out. This was a huge problem for investors
because they were buying stocks in expectation of rising share prices rather than fundamentals. Even with this surge of activity in the securities market,
propositions that the federal government should require financial disclosure and prevent fraudulent sale of stock were never seriously followed. The
economy stumbled in the months leading up to the stock market crash of 1929 due to excess production in many industries. This created a

Causes Of Chinese Stock Market Crash Essay
Chapter 2: Causes of the Chinese stock market crash
In the previous chapter, the researcher has covered some basic information about the stock market. Hence, in this chapter, the current situation that the
Chinese stock market is suffering from and factors contributing towards this crisis will be analysed. At the end of this chapter, readers will have an
idea how a market which was stable for many years could become unsteady within such a short period of time.
2.1.The definition of a stock market crash
A stock market crash represents a steep fall in the value of market prices and it is often the factor creating economic depression (Galbraith, 1988).
However, the value of the drop that can be considered as a predictor for the crash is debatable. On one hand, Mishkin (1990) argues that the stock
market crash only occurs when there was a 20 percent fall in stock price across crucial cross sections of a market. On the other hand, Patel and
Sarkar (1998) define a stock market crash as a fall of more than 35 percent of the market's stock value. No matter how large the percentage of a drop
in the price of stocks is on the stock market, both theories agree that the most devastating crashes are usually consequences of an overly inflated
market, which is also known as a "bubble" (Mishkin, 1990; Pater & Sarkar, 1998).
2.2.The definition of a bubble in the stock market
A bubble in a stock market is an investing phenomenon involving the excessive expectation of investors concerning

Essay On The Stock Market Crash
The stock market crash was a leading cause in the great depression and negatively impacted the US by increasing poverty, making it harder to live,
and it also changed economics and the world today. I will explain the reasons behind the crash and its effects on life in America.
The stock market, in this case the New York Stock Exchange (NYSE), is a place where people can go to buy, sell, or trade stock, or shares, of
companies. The NYSE, which was officially founded in 1817, was bustling with people and investors in the 1920s. Everyone thought that the stock
market was just an easy way to get rich. People thought that profit was certain, but it wasn't. In 1929 the NYSE had reached its peak, as almost
everyone had stock. While there were warning signs of a potential crash, many people ignored them or marked them as insignificant. October 24th is ...
Show more content on Helpwriting.net ...
Farmers were faced with severe droughts which caused most of their crops were destroyed. Farmers would take out a loan to buy seed. When the
harvest came they would reimburse the loaner. Many farmers went bankrupt because they were unable to repay their debts.
After the crash of the stock market and the closure of banks nationwide, the Federal Government took steps to prevent another crash or to at least
minimize the impact. Additionally, they took steps to get out of the depression. President Franklin D. Roosevelt proposed a "New Deal." His New
Deal introduced many agencies and programs that helped lower the unemployment rate and promote the economy. Many of these programs are still in
effect today, helping prevent another large economic depression. The Federal Reserve also took measures to stop banks from closing like they did
after the crash.
The stock market crash caused an economic depression in the US and also worldwide. It destroyed many businesses and investors and had a negative
impact on America. Steps have been taken to prevent a similar crash from

Stock Market Crash of 1929
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.
The research process for my report was no easy task. The simple part was choosing my topic. As soon as I saw "Crash of 1929" on the topic list, I had
my mind fixed on it. After selecting that topic, I did a couple days of basic research and got a feel for it. The harder part was choosing a question to
base my report on. The first question that came to my mind was 'How did the 1929 crash affect the U.S. ... Show more content on Helpwriting.net ...
The following three paragraphs will discuss the reasons why the Crash occurred and possible prevention methods. One reason the stock market crashed
was margin buying. When you buy a stock on margin, it means that you buy a stock on credit and a promise with your broker that you will pay off
the loan later. This method will increase your earnings if the stock's value rises thus making it very popular. On the other hand, if the stock's value
falls, you will lose even more money. This is why margin buying is very risky especially at the high rates. When the Stock Market fell, many
people went broke. Male investors jumped off the top of buildings because they were in such a bad financial situation. According to the Financial
Times, the President of the American Bankers Association said "Bankers are gravely alarmed over the mounting volume of credit being employed in
carrying security loans, both by brokers and by people." The bankers should have lowered the rates to reduce the negative effects of margin buying.
The average rate before October 1929 was 50% – 75%. Had it been lowered to 10 percent, the crash would have been shortened to a couple of months.
Another big problem that led to the Stock Market Crash was public misconception. The general conception was that the stock market was an easy way
to make money. People began believing that stock prices would go up forever. As a result, many people bought publicized stocks

Stock Market Crash Of The 1920s Essay
When most people think of the U.S in the 1920s they thinks of flapper girls, the up and coming sports industry, and all the new technology that was
coming out. What many people don't think of is all the ups and downs that the economy experienced. From the economical adjustments after WW1 and
the worker strikes, all the way to the booming economy and eventual crash of the stock market. With that being said, I believe it is safe to say that the
1920s had it's fair share of ups and downs. Although the 1920s had many great attributes, it is still most widely known for the disastrous stock market
crash. After the end of World War 1, theUnited States of America was in a pit of hurt trying to stabilize the economy again. In the end, however, they
somehow come out stronger. While the the war may have sent the unemployment rate on a decline from 7.9 percent to 1.4 percent it still cost the U.S
an unruly amount of money overall. Some have estimated that the United States had spent an overall approximate of $32 billion, or 52 ... Show more
content on Helpwriting.net ...
The epic boom ended in a catastrophic bust. On Black Monday, October 28, 1929, the Dow (stock market index) declined by nearly 13 percent. On
the following day, Black Tuesday, the market dropped nearly 12 percent. By mid–November, the Dow had lost almost half of its value. The slide
continued through the summer of 1932, when the Dow closed at 41.22, its lowest value of the twentieth century, 89 percent below its peak. The Dow
did not return to its pre–crash heights until November 1954. In the end, the stock market lost $30 billion in market value which would be equivalent to
about $396 billion today. That is more than the total cost of World War I. The crash was the worst in U.S. history. It destroyed not only the confidence
in Wall Street markets but it also undeniably led to the Great

Cause Of The 1929 Stock Market Crash
In late October of 1929, the U.S. stock market crashed, setting our nation into the Great Depression. In an attempt to reveal the true catalysts of the
event, the book "Causes of the 1929 Stock Market Crash" examines popular beliefs of what really caused the economic tragedy. The nine questionable
causes that are discussed in this book are that the stock market was too high in September of 1929 due to "excessive speculation" (Bierman 32), there
was a downturn in business activity, the Hatry affair, the Federal Reserve Board's actions, a message that there was a "war" against speculators,
excessive buying on margin and of investment stocks, excessive leverage in terms of debt, a competitively priced utility market segment paired with a
setback in the public utility market, and an overreaction by the stock market.
Bierman argues that the overall stock market was not "excessively high" in September of 1929 and he even explains that the business outlook was
favorable. Therefore, the crash did not occur because the market was too high. However, at least one section of the market (public utilities) was too
high and too levered, and the stage was set for the selling panic by the press and the governmental officials repeatedly speaking of an orgy of
speculation.
After disproving common beliefs about the stock market crash, he continues to explain the actual causes.
The next false cause is the Hatry case, which Bierman refers to as a "tragedy". It involved an "aggressive

Primary Causes Of The Stock Market Crash
Stock Market Crash
The stock market crash of 1929 was one the most devastating events in American history wiping out investors and banks alike and gradually
throwing America into the Great Depression. The economical plummet began on October 24 a day known as "Black Thursday", the stock market
had decreased by 20% and round 12 million shares were traded that day 3x the normal amount. Over the next couple days 3 the 3 leading banks
bought stocks to restore confidence in the market. Which seemed to have stabled the market for a moment, though over the weekend many investors
lost their faith in the market and quickly tried to get rid and sell their shares. When the markets reopened on Monday, October 28, 1929, another record
number of stocks were traded and the stock market declined more than 22%. The real panic and hysteria came on October 29, "Black Tuesday" a
reported 16 ... Show more content on Helpwriting.net ...
A second probable cause was the great expansion of investment trusts, public utility holding companies, and the amount of margin buying, all of
which fueled the purchase of public utility stocks, and drove up their prices. Public utilities, utility holding companies, and investment trusts were all
highly levered using large amounts of debt and preferred stock. The third being economic prosperity leading people to believe the market could only
grow causing carelessness of people and banks with money investing beyond capable of what they had. People would invest in stocks, banks, and
corporation then the banks and corporations would also invest in stocks the stock ended up affecting everyone. International trade declined 30% and
nations tried to protect their industries by raising tariffs on imported goods. The Federal Reserve decided not to bail out banks to prove a point for
banks not to over invest depositor's

One of the major cause for the economy to fall was the stock market crash of 1929. The American stock market "boom" was built on borrowed money.
There was a major wealth gap between America's rich and poor that reached its greater extent in the twentieth century. One percent of Americans held
70 percent of all America's wealth, meaning the other 99 percent of American's had to split up the remaining 30 percent of wealth for all purchases.
Eventually, with hardly enough money to go around, the cost of installment plans and home mortgages had skyrocketed. This led to the 99 percent no
longer being able to borrow anymore money, meaning they stopped making purchases. Another cause to the economic crisis was that the international
economy lacked

Black Tuesday was Tuesday, October 29, 1929. This was the day the New York Stock Exchange crashed. This was the single largest crash in the
country. Black Tuesday hit Wall Street as investors traded 16 million shares in one day on the New York Stock Exchange. Black Tuesday wiped out
thousands of investors and billions of dollars were lost. Black Tuesday was an event leading up to the stock market crash. As a result numerous
Americans lost all to a lot of their savings. Black Tuesday was also known as the beginning of the great depression which was economic recession that
made Americans struggle to make money and provide food, shelter and clothing for their families.
The great depression was also cause by the poor distribution of wealth. ... Show more content on Helpwriting.net ...
Before 1931 banks were evened out because the people who would take out money were evened out by the people who put in money. But in 1931
everyone tried to take out money and the banks didn't have enough money to give everyone back all their money which is called a bank run.
Therefore banks started to close down. In the year of 1931 over 2,000 banks had closed. And in the year of 1943 4,000 banks had closed which had
left countless Americans with no job and no money. People were starving and lived without homes. The banks had wiped out hundreds of thousands
individuals life savings and left them hopeless.
The Dow Jones Industrial average reached its highest point which was 381.17 on September 3rd, 1929. The Dow Jones Industrial average plummeted
in March 1929 but bankers reassured investors. On black Monday the percent in change was –12.82 and the change was –38.33. On black Tuesday the
percent in change was –11.73 and the change was –30.57. The Dow Jones Industrial Average lost 90% of their value overall.
On September 26 the bank of England raised it rate to protect the gold standard. The gold standard is when the value of a country's money is tied to the
amount of gold the country possesses. Anyone who was holding that country's paper money could present it to their government and receive an

Why Did The Stock Market Crash

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