Black Tuesday hit the stock market on October 29 and over sixteen million shares of stock were dumped in just that one-day. There were billions of dollars lost in the stock market and there were thousands of investors that were wiped out. This begin the economic spiral that would be called the Great Depression, which lasted ten years and is considered the longest economic recession that the western world has ever seen.
In the 1920s, there was a fast expansion of the United States stock exchange and it reached its peak in the summer of 1929. Even by then, with unemployment on the rise and production declining, the stocks were higher than their value. Other factors that played a part in the crash of the stock market, low wages, agricultural struggle, a great amount of debt, and banks that gave loans in excess that couldn’t be paid back.
It all started in September of that year and it wasn’t until the 18th of October when they started to see the fall. This made all of the investors to start to panic and on October 24, also known as Black Thursday over twelve million stocks were traded. To balance out this, investment companies and bankers started to buy stocks in bulk to try to stabilize the market. But by that Monday, the damage had already been done and they prices started to take a free fall into Black Tuesday. There were so many stocks being exchanged on Black Tuesday that the tickers couldn’t handle the volume of exchanges and the machinery couldn’t handle it, which had them running hours behind.
Slowly after the stock market crash of 1929, all the stocks could do is go up. It was a long road to get them back up to where they were before the crash. In fact by 1932, the stocks values were only about twenty percent of the value they were the summer before the crash. This was not the only reason for the Great Depression but it did play a big part in it. This just accelerated the great recession that the United States was in, which lead to almost half of the banks in America failing and the unemployment rate being thirty percent by 1933. President Franklin D. Roosevelt helped with the effects of the Great Depression by implementing reform and relief for the people. And the United States economy finally turned around with the start of World War II and the reinvention of industrialized America.
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