BLACK TUESDAY, OCTOBER 22, 1929:STOCK MARKET CRASH
- Dow Jones Industrial average collapsed
- Continued selloff took place until 1932 when the DJIA was 89% of its 1929 peak
- People threw themselves out of buildings
- Businesses go bankrupt
- Banks close
- Depression beings
- Overproduction
- Stock Market (buying on margin)
- Tarrifs (lowers trade)
- International Debt
- Weak European economy
- Unemployment
- Bank failures and closures
- Government changes
- More tarrifs
Interesting Fact
Zippers became widely used because buttons became too expensive.
Quote
“It came with a speed and ferocity that left men dazed. The bottom, simply fell out of the market..... The streets were crammed with a mixed crowd — agonized little speculators,... sold-out traders,... inquisitive individuals and tourists seeking ... a closer view of the national catastrophe..... Where was it going to end?”
--Account of the stock market crash in the New York Times.
--Account of the stock market crash in the New York Times.
Subjunctive Question
What would the USA look like today if the stock market had never crashed?
Summary
The depression began when the Dow Jones Industrial average collapsed. Selloff continued until 1932 when the DJIA was at 89% of its 1929 peak. People began to throw themsleves out of buildings, businesses went bankrupt and the banks closed. The casues of the crash were overproduction, buying on margin, tarrifs, international debt and a weak European economy. Once the crash had occured, it led to many consequences. These incluce; unemployment, bank failures and closures, government changes and more tarrifs.