How Did The Stock Market Crash Of 1929

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Most people would think that the Crash of 1929 was an accident involving more than one vehicle. But unlike most crashes this crash didn’t involve a collision of two or more vehicles. This was a crash of the stock market. The Crash was an event that took place during 1929, in the city of New York on Wall Street. Many things led to the Crash of 1929, from economic imbalances, to the failure of structures. This event lasted for five long dreadful days, bringing us to a terrible aftermath that would take us quite some time to recover from. Many events took place that led up to the big crash of the stock market. World War I had just ended and there were weaknesses in the banking systems, in which America had 30,000 of. One of the major causes …show more content…

This stock market crash started earlier than the “Crash” date. The fall began on October 18th, the real panic set in on October 24th (“1929 Stock Market Crashes”). The official date of the crash was October 29, 1929; one of the biggest days in history. The Dow; a price-weighted average dealing with the stock market, started at 305.85 and fell 11% on the first day, triple the amount of normal value of trade. The Bankers went into a panic and eventually started buying shares in order to boost up the percentage, at the end of the first day it was only down by 2% (Amadeo). The days following weren’t any …show more content…

The people were forced to sell their businesses and cashed life savings in order to survive through it, they struggled to even find the money to make ends meet (Amadeo). The stock market had lost 90% of the value between the record high on September 3, 1929 of 381.2 to the bottom on July 8th, 1932 of 41.22 Dows. This process of recovering took an average of 25 years to regain the amount made in September of 1929 (Amadeo). People were experiencing things unimaginable due to this terrifying event, “Thousands of newly homeless people erected makeshift shelters out of cardboard and wood and named their poverty-stricken colonies ‘Hoovervilles.’ And it was said that a turned-out empty pocket was called a ‘Hoover flag’”(Arnesen 37). More things were going wrong, leading to one of the worst times in history, the Great

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