Stock Market Crash of 1929 Essay

Good Essays
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…
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
Get Access