Black Tuesday Dbq

Document two explains what happened when the banks went out of business. Black Tuesday was in October 29, 1929 and it was the day that the stock market crashed most deeply. This hinted to the start of the Great Depression. The stock market crashed because people did not have enough money to pay back the people who they borrowed money from. Due to this process the market started to fall. With prices falling, brokers asked investors to pay back what they owed. Investors then sold their stock to repay their loans. A panic quickly set in. Between October 24 and October 29, desperate people tried to unload millions of shares. As a result, stock prices dropped even further. Banks were also running out of

Many believed that Black tuesday began the Great Depression, on October 29, 1929 a group on panicked sellers traded nearly 16 million shares on the New York Stock Exchange causing the Dow Jones Industrial Average to fall. Others believe it was the stock market crash in 1929, or that Black tuesday was just the begining triggering the stock market to crash causing the Great Depression. As soon as president Franklin D. Roosevelt came into office he began searching for ways to better American life as quickly as possible. He proposed a series of programs through The New Deal, these programs created jobs for many unemployed men, while others offered aid, created the FDA so people know whats in the products they're purchasing, and banking acts to

29, 1929 the stock market crashed when panicked investors tried to sell all their shares at once. Now known as Black Tuesday, the crash marks the start of the Great Depression, one of the longest and most catastrophic economic downturns in the world. The depression caused by the crash affected Canada greatly, as businesses closed and unemployment rates went up. Prairie farmers were hit the hardest, having to move into cities after wheat prices dropped and the drought completely turned the soil into

The Great Crash also known as Stock market crash of 1929, happened in 1929 which was one of the biggest and important history of America. During this time in late October the stock market of the country crashed which lead to the beginning of great depression, and it has lasted for 10 years. Many countries got affected due to the great crash, especially all Western industrialized countries. “Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day.” (“Stock”). After the crash, the country had tried to cope up from the loss, but it still continued to drop. “By 1932 stocks were worth only about 20 percent of their value in the summer of 1929. (“Stock”). Due to this depression, nearly half of the banks failed, businessman faced bankrupts and people have lost their

The stock market crash, called Black Tuesday. Unequal distribution of wealth was a key factor during the time period as well. The day know as “Black Tuesday” was the day the stock market crashed. This led to the fall of stock prices, in fear, people sold their stocks and gathered the money they could. The people who didn’t, lost all of their stocks. Those who bought them on credit, they were now in debt. Investors lost a collective amount equal to the amount spent in WWI, that’s billions of dollars gone, approximately thirty-two billion dollars (32,000,000,000). As bad as the crash was, unequal distribution of wealth did not help. The rich saw an income increase of 70%, and the poor saw an increase of 9%. More than 70% of families earned less than $2500/year. Many of these families couldn't afford household products, such as the flood of overproduced goods. Only one out of ten families owned an electric refrigerator. One thing many people overlook when on the subject of the Great Depression is the president's influence on the situation. The two presidents during this time were Herbet Hoover and Franklin D. Roosevelt. Hoover was in office during the collapse of the economy, he didn’t believe in national relief, he believed in self-prevalence and self-help. His beliefs didn’t get the confidence of the people, in 1933, a fourth of working American’s were out of a job, that’s more than fifteen million people unemployed. Many people disliked Hoover, so when they needed to make a home out of paper, glass, tin, or whatever they could find, they named the towns constructed from these items “Hoovervilles”. They were found mostly on the outside of cities. Hoover's idea of self-reliance didn’t get him reelected, he lost to Franklin D. Roosevelt in 1933. Roosevelt brought forward a new strategy to take on the economic problems, it was called the New Deal. The New Deal was a series of actions him and his

The Great Depression was a time of great economic tragedy during the 1930’s. October 24, 1929 was the day of the stock market crash, causing economical shortage everywhere, even globally, and this scared everyone, including the rich. This day was/ is known as “Black Thursday”, where over 2.9 million shares were traded. On “Black Tuesday”, five days later, more than 16 million more shares were traded in another wave of panic. Many investors then lost confidence in their banks and demanded deposits in cash which forced the banks to liquidate loans in order to supplement their on hand cash reserves. By 1933, around 15 million Americans were unemployed and nearly half of the country’s banks had failed. This stopped Americans from purchasing which then led to less production of goods and decreased the amount of needed human labor. In the end, millions of shares ended up worthless, and those investors who had bought stocks with borrowed money were wiped out completely.

The stock market crashed on Thursday, October 24, 1929, less than eight months into Herbert Hoover’s presidency. Most experts, including Hoover, thought the crash was part of a passing recession. By July 1931, when the President wrote this letter to a friend, Governor Louis Emmerson of Illinois, it had become clear that excessive speculation and a worldwide economic slowdown

After the 1920’s it seemed as if America was on cloud nine, when really a catastrophe was about to happen that they didn’t even think would come. The Stock Market crashed on October 29, 1929 a day also known as Black Tuesday. President Hoover at the time believed that the Laissez Faire policy was the right choice meaning that he thought that the market would get back together or fix itself without the government intervening.

At the tail end of the Roaring Twenties, the previous Stock Market prosperity crashed on Black Monday, which was October 28, 1929. The Dow Jones Industrial Average (DOW) fell by 13 percent, and it continued to fall by 12 percent the next day, or Black Tuesday. The beginnings of the Great Crash involved brokerage houses, financial institutions that help the buying and selling of financial securities. Buyers put down a portion of the price for stocks and borrowed loans for the rest. In turn, the money earned from the stocks helped pay for the loans. Thus, the stocks soared price-wise. However, the Federal Reserve Board questioned the stock speculations, the purchasing of high-risk stocks for a high-reward, and took action in New York. The Reserve

This only deteriorated as businesses would suffer financially and unemployment was at an all the time high. Although President Franklin D. Roosevelt came up with tactics and strategies to lessen the effects of the damage done, the economy wouldn’t fully overcome until after 1939 as World War II shifted America. For a little over a decade, businesses would go through financial turmoil and people would have to find other ways to bring in revenue. During the late summer of the 1929, the American economy entered into a recession. According to the Merriam-Webster Dictionary, a recession is defined as a period of reduced economic activity. Investors had traded some 16 million shares on the New York Stock Exchange in a single day. That day in history was formally known as “Black Tuesday”. Those same shares had ended up being worthless with no monetary value. The investors who bought them with borrowed money, suffered an excessive lost. Consumer reliability was gone as spending was nonexistent which resulted in factories being closed down. The lack of consumerism also impacted those who had invested in mass production. The consumers who still felt a need to spend, were forced to use credit cards and evidently fell into major debt; foreclosures on homes and repossessions climbed rapidly as people tried their best to live again and have that

“A record 12.9 million shares were traded that day, known as “Black Thursday” Five days later, on “Black Tuesday” some 16 million shares were traded after another wave of panic swept Wall Street” (History.com Staff). Due to the panic selling, new financial regulations were put into place to prevent panic selling from occurring in the future and to keep the stock market safe for investors. The first of four banking panics took place in 1930, it was a loss of confidence insolvency of their banks by large numbers of investors and they demanded deposits of cash. The people ran to the bank because they had distrust in their bank, but this puts us in financial instability, and new bank procedures and regulations, which help banks, become more solvent in the future. The New Deal aided in recovery from the Great Depression was the (TVA) they built dams and the (WPA) which help control flooding (History.com Staff).

Firstly I 'll get into how the market crashed, being dubbed Black Thursday. The crash spelled disaster for the financial system. Companies with serious investments featured an abrupt shock to their assets. This was the beginning of the depression. The national income slipped lower each year from 1929-1932, and it did not return until World War II. Unemployment became the most important problem of the depression to the people living in the US. Another major problem was that the agricultural prices were cut almost in half, and many farms foreclosed because of it. There are many different theories as to why the stock market crashed that day. One was that the attempts of the US government and the Federal Reserve Board to stop speculation caused an overreaction in the market, leading to the selling panic.

People began buying things such as cars and appliances on credit. Many people earned less money than needed to live a comfortable lifestyle. Businesses were letting people with lower incomes buy things on credit. Unfortunately the stocks rose faster than the value of the companies they represented. When the stock market collapsed, these people did not have the money to pay back what they owed. This resulted in financial ruin. Before the stock market crash investors traded about sixteen million shares on the New York stock exchange each day. After "Black Tuesday", billions of dollars were lost wiping out thousands of investors. Had most of those investors sold their stock the day before the crash, they would have received a large profit. The 1929 crash uncovered another problem in the United States. The nations banking system was in trouble. In the 1920's thousands of new banks were opened, however, most lacked adequate money in reserves. Between 1923 and 1929, banks across the country failed daily, but the general rising prosperity hid these failures. The crash made a bad situation even worse, and banks failed at a more rapid rate.

Tuesday, October 29, 1929 – otherwise known as Black Tuesday, is the day of the stock market crash. This crash caused a sudden and drastic change in the economy while also starting The Great Depression which lasted from1929--1940. Because of The Great Depression, President Hoover was disliked across the country, so when the people were electing a new President they choose Franklin Roosevelt. The new President was exceptionally eager to put in new laws and programs into effect to pull the country out of the depression. Although Franklin Roosevelt's policies gave the public relief, his New Deal only helped the public in a purely phycological way. Not only did the New Deal worsen the economy, it also was hastily put together, and it effected people fleeing the Dust Bowl for "better jobs" in California.

In the late October of 1929, the United States Stock Market took an immense plummet. This plummet acted as a catalyst to the beginning of the 10 year long Great Depression. It was known as Black Tuesday, aka the Wall Street Crash of 1929. (Harold)