The Market Crash of 1929 Essay

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The Market Crash of 1929 Wall Street Crash, stock market crash in the United States in 1929. In 1927, after having focused on investing abroad and with the US economy growing stronger, the financiers based in New York's Wall Streetturned their attention to their home market. As they bought into the stock market, so the prices of securities rose. As they bought more and more, prices went higher and higher, and ordinary investors were attracted to invest by the apparently effortless boom that was created. By the middle of 1929 it was estimated that about nine million Americans (out of a population of 122 million) had capital …show more content…
On the following day, "Black Thursday", more than twice those numbers were traded. On Monday nine million shares changed hands; $14 billion had been wiped off the value of shares in less than a week. Then, on "Black Tuesday", everything fell apart; the share price of many big companies including General Electric and Woolworth collapsed. In that one day more than 16 million shares were traded and another $10 billion was wiped off share values. What happened on Wall Street was mirrored on other stock exchanges in the United States from Chicago to San Francisco.

It was a stark end to a decade that had been marked by optimism, high employment, and prosperity. Not surprisingly, confidence in banks and bankers, the stock market and stockbrokers evaporated. Bankruptciesand destitution were rife. Mortgageforeclosures increased. The middle classes retrenched. Many lost their jobs; unemployment rose by nearly two million within half a year. Although when it began some thought it was merely a welcome correction in the market, the crash marked the start of the worldwide Great Depression and created the conditions for the New Deal introduced by Franklin D. Roosevelt in 1933.

New Deal, name given to the peacetime domestic programme of United States president Franklin D. Roosevelt, and especially to the innovative measures taken between 1933 and 1938 to counteract the

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