Essay about The causes and effects of the stock crashes

1596 Words 7 Pages
The causes and effects of the stock crashes

Almost 75 years and almost 20 years ago, there were huge crashes in New York. These crashes caused an uproar throughout the nation. Number of people died, billions of dollars lost and damaged lots of lives. Those crashes had been called most severe of the 20th century. Those crashes are symbolized as Black Days. Well, you might think that those crashes could be car crashes or plane crashes or train crashes. You might also think that if nation could have lost billions of dollars and lots of lives, those could be car or plane or train crashes. But as you thought, those were not car or plane or train crashes 75 and 20 years ago. The reasons were different than what you are thinking.
…show more content…
The main affects of the stock crashes were the general investors, who have faith in their stock markets, economical system and financial solidarity; and the growing economy, which tried to be stabilized after bloodiest world war I. The 1920s began with the closing of the bloodiest war the world had ever witnessed. The nation was tired and in trouble, adjusting to peacetime living. (Analytical) Essay on the 1920’s, 2000). In the later half of 1920s things were really rocking in the US and around the world. The rapid increase in industrialization was refueling growth in the economy and technology improvements had the leading economists believing that the upraise would continue. During this period, wages increased along with consumer spending and stock prices began to rise as well. Billions of dollars were invested in the stock market as people began speculating on the rising stock prices and buying of margins. (Analytical Essay on the 1920’s, 2000).

So, you might think, how would these stock markets crashes have occurred? Since massive fraud, illegal activities, programmed trading could be some of the main causes of stock crashes. None of leading economic analysts has figured out yet after 75 years. But, number of analysts tried, why and how it happened. They figured out that in past and in future there are number of parameters can
Open Document