Stock market crash october 1929

Seventy-nine years ago this week, the New York Stock Exchange experienced the worst financial panic the country had ever seen. When President Calvin Coolidge delivered his State of the Union address, he noted that America had never "met with a more pleasing prospect than that which appears at the present time.

World War I was thoroughly behind them, radio had been invented, and automobiles were growing cheaper and more popular. Stocks were on a tear: At that time, it was the longest bull market ever recorded; some thought it would last forever.

In the fall of , economist Irving Fisher announced that "stock prices have reached what looks like a permanent plateau. Unsurprisingly, this exuberance lured more investors to the market, investing on margin with borrowed money. By , 2 out of every 5 dollars a bank loaned were used to purchase stocks.

The Stock Market Crash of |

The market peaked on September 3, Over the next few weeks, however, prices began to move downward. And the lower they fell, the faster they picked up speed. In the last hour of trading on Thursday, Oct. When the closing bell rang at 3 p. No one was sure what had just happened, but that evening provided enough time for fear and panic to set in.

When the market opened again the next day, prices plunged with renewed violence. Stock transactions in those days were printed on ticker tape, which could only produce words a minute. The following day, President Herbert Hoover went on the radio to reassure the American people, saying "The fundamental business of the country And then came Black Monday.

As soon as the opening bell rang on Oct. Huge blocks of shares changed hands, as previously impregnable companies like U. Steel and General Electric began to tumble.

So many shares changed hands that day that traders didn't have time to record them all. They worked into the night, sleeping in their offices or on the floor, trying to catch up to be ready for October As the story goes, the opening bell was never heard on Black Tuesday because the shouts of "Sell! The volume of Western Union telegrams traveling across the country tripled.

Stock Market Crash Video - The Great Depression - kysiqubonypun.web.fc2.com

The ticker tape ran so far behind the actual transactions that some traders simply let it run out. Trades happened so quickly that although people knew they were losing money, they didn't know how much. Rumors of investors jumping out of buildings spread through Wall Street; although they weren't true, they drove the prices down further.

Brokers called in margins; if stockholders couldn't pay up, their stocks were sold, wiping out many an investor's life savings in an instant.

Stock Market Crash of Facts, Causes, Effects

One trader fainted from exhaustion, was revived and put back to work. Others got into fistfights.

The New York Stock Exchange's board of governors considered closing the market, but decided against it, lest the move increase the panic. When the market closed at 3 p. Stocks continued to fall over subsequent weeks, finally bottoming out on November 13, The market recovered for a few months and then slid again, gliding swiftly and steadily with the rest of the country into the Great Depression.

Companies incurred huge layoffs, unemployment skyrocketed, wages plummeted and the economy went into a tailspin. While World War II helped pull the country out of a Depression by the early s, the stock market wouldn't recover to its pre-crash numbers until See pictures of the top 10 scared traders. See pictures of the recession of MY ACCOUNT SIGN IN SIGN OUT SUBSCRIBE SUBSCRIBE. Politics World Business Tech Health Motto Entertainment Science Newsfeed Living Sports History The TIME Vault Magazine Ideas Parents TIME Labs.

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Stock Market Crash Of

American Voices Rio Olympics Next Generation Leaders The Most Influential People Person of the Year Top of the World A Year In Space. Subscribe Newsletters Feedback Privacy Policy Your California Privacy Rights Terms of Use Ad Choices. Brief History of The Crash of By Claire Suddath Wednesday, Oct. Related The Crash of '29 The Recession of The Dangers of Printing Money.

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