The 1929 Stock Market Crash: The Baker

The United States entered one of the most devastating economic periods in its history after the stock market crash of 1929. The massive damage done to the quality of life of the average American during this time, known as the Great Depression, prompted a fundamental change in the attitude of the nation. The most notable change was a shift in public belief about what type of President would best serve the struggling nation. The election of Franklin D. Roosevelt completely reversed the trend of Presidents that pursued policies focused around benefitting businesses and the wealthy. Whereas leaders before him held fast in their support of big businesses, even to the point of ignoring the harm they had brought to the country, Roosevelt focused his

The 1929 Stock Market Crash "We’d like to thank you, Herbert Hoover/ For really showing us the way/ You dirty rat, you Bureaucrat, you/ Made us what we are today (www.stlyrics.com)." These lyrics from the musical Annie place the blame for the 1929 Stock Market Crash solely on the then former president Herbert Hoover. The truth of the matter is that placing the blame for the Stock Market Crash on Mr. Hoover is very unfair. Herbert Hoover was only one of many causes of the Stock Market Crash. It is easy to try to place the blame for one of the most destructive events in the history of the American economy on one person, but the real causes lie in the rampant speculation, the lack of regulation of the stock market, and the questionable ethics of many of the companies and brokers that were involved in the market. Although the 1929 Stock Market Crash is generally blamed on a few scapegoats, it was actually caused by a multitude of factors, which makes finding a scapegoat impossible.

The Stock Market Crash occurred on October 29th, 1929. Wall Street got struck on Black Tuesday when, on the New York Stock Exchange, investors traded 16 million dollars worth of shares in one single day. Billions of dollars were cut, destroying the investments of thousands of investors. After the event of Black Tuesday, America’s industrial world spiraled downwards into the Great Depression. This was the most powerful and extended economic breakdown in the history of the Western Industrial world up till then.

During the 1920's, the North American economy was roaring, but this decade would eventually be put to a stop. In October of 1929, the stock market began its steepest decline to this date in history. Many stock market traders and economists believe and pray that it was a one-shot episode never to be repeated. On the other hand, many financial analysts and other economists believe that the current stock markets are in place to repeat the calamitous errors of the 1920's. In this paper, I will analyze the causes of the crash and discuss the possibilities of it re-occurring.

Baker was born in Virginia in 1913 and get along in sub urban North Carolina. According to Biography.com, “Baker was bring to a do to her mum, a dead slave. Her mum told Baker multiple stories close but no cigar her career, including a spanking she had introduced at the hands of her owner” (“Ella Baker Biography”). It is from top to bottom possible that Baker’s grandmother’s go through as a slavery animated her to perfect the African American groups. In 1927, Baker was the category valedictorian when she graduated Shaw University in Raleigh. Biography.com observes that “After she apt her length, Baker confused to New York City and helped fly the Young Negroes' Cooperative League, which allowed its members to mingle their cash flow to gain better deals on gospel and services.” Baker’s dignity and her cheerful, hard-working qualities obligated her accomplishment in her became adept in work. Since previously, Baker had directed her all such born day goal, which is the driving long arm of the law to espouse approach civic rights. Ella Baker showed her motivations and qualities to address oneself to a national what is coming to one hero in her early all one born day experience. Later, she

A turning point is a point at which a significant change occurs. In United States history, there has been many turning points which have dramatically impacted the development of the nation.

When most people think of the U.S in the 1920s they thinks of flapper girls, the up and coming sports industry, and all the new technology that was coming out. What many people don’t think of is all the ups and downs that the economy experienced. From the economical adjustments after WW1 and the worker strikes, all the way to the booming economy and eventual crash of the stock market. With that being said, I believe it is safe to say that the 1920s had it’s fair share of ups and downs. Although the 1920s had many great attributes, it is still most widely known for the disastrous stock market crash.

The United States signaled a new era after the end of World War I. It was an era of hopefulness when many people invested their money that was under the mattresses at home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. 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 (“The Stock Market

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.

On October 29, 1929, America experienced the most calamitous stock market crash in its history. Although some tried to prevent the crash from getting worse, the fear and panic that so many Americans felt, caused them to make a horrible situation even worse. The 1929 stock market crash affected America in several ways, causing America to go from a time of prosperity, to a time of strife, leading Americans to lose billions of dollars and also leading to an increase in homelessness and unemployment rates, leaving America devastated.

It is often said that perception outweighs reality and that is often the view of the stock market. News that a certain stock may be on the rise can set off a buying spree, while a tip that one may be on decline might entice people to sell. The fact that no one really knows what is going to happen one way or the other is inconsequential. John Kenneth Galbraith uses the concept of speculation as a major theme in his book The Great Crash 1929. Galbraith’s portrayal of the market before the crash focuses largely on massive speculation of overvalued stocks which were inevitably going to topple and take the wealth of the shareholders down with it. After all, the prices could not continue to go up forever. Widespread speculation was no doubt a

The stock market is what one would know as a collective group of buyers/sellers that trade stocks, also known as shares on a stock exchange. These securities are listed on the exchange itself and trade freely each and every day. On the exchange, stocks move hands day in and day out. Companies are able to get their stock listed on the exchange at any time that they want. There are other stocks, too...known as OTC stocks or over the counter stocks that go through a specific dealer. Larger companies tend to have their stocks listed on exchanges all throughout the world. Participants in the market can be anyone from your grandma, to retail investors, day traders, institutional investors, and so forth. One notable exchange is the NYSE; also known as The New York Stock Exchange. Moving forward, a stock market crash is when a decline of stock prices takes place throughout the stock market that results in a catastrophic loss of wealth via paper. The crashes are driven strictly by panic 9 times out of 10 a crash takes place. As a crash is happening, panic occurs; the panic keeps evolving and ends up like the snowball effect before you know it. A crash occurs when economic events take place. These events are always bad news... The behavior of traders follows, which leads to a crash when panic ensues. Crashes normally occur of a seven day period and may extend even further. Crashes happen in bear markets as the market is already weak to begin with. Once traders see a drop in prices,

America’s Great Depression is believed as having begun in 1929 with the Stock Market crash, and ending in 1941 with America’s entry into World War II. In order to fully comprehend the repercussions and devastating effects of the Crash of 1929, it is important to examine the factors that contributed to the catastrophic event which led to The Great Depression. The Great Depression was the worst economic slump in U.S. history, and it spread to most of the industrialized world. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920s, and the

The year was 1928 and the American economy was thriving like it had never been before. With Henry Ford’s sponsorship of the assembly line, the automobile industry was rising and vehicles were becoming more affordable. The end of World War I was also having a positive effect on the American economy. The events leading to the crash of ’29 were recognizable and now as economists look back some ask how did we as a nation not see this coming? The actual crash did not occur overnight, it lasted over the span of five days, days that America will never forget.

It was 1929, and in the United States things could not be better for those smart enough, or for that matter, brave enough, to gamble on the Stock Market. All of the big stocks were paying off handsomely, the little ones too. However, as much as analysis tried to tell the people that this period of great wealth would last, no one could imagine what would come of the United States economy in the next decade. The reasons for this catastrophic event in American 20th century history are numerous, and in his book, The Great Crash, John Kenneth Galbraith covers the period and events which lead up to the downward spiral in the fall of 1929 and the people behind the scenes on Wall Street who helped this fire spread.