The Causes Of The Stock Market Crash Of 1929

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The Stock Market Crash of 1929 The Stock Market Crash of 1929 in America was a influential crash in the market that began in 1929 after what was known as the Roaring Twenties. During the Roaring Twenties the Dow stock soared and numerous investors bought shares of stock and thought that it was a very safe place to put their money. Dow Jones showed great promise from 1921-1929 as many investors became millionaires. Investors soon irrationally invested their life savings and mortgaged their homes to put the money into hot stocks. People began borrowing and spending too much money and never paying it back. There are myths during this time of people jumping from building windows committing suicide. Foolish investing, irrational spending and bank…show more content…
An Encyclopedia of Events That Changed America Forever "The stock market crash in New York City on Black Tuesday, October 29, 1929 devastated the U.S. economy and wiped out the fortunes and life savings of many investors" (Thackeray & Findling, 2011). This left the economy in shambles. Second, many people began trying to withdraw their money and take out loans. Some banks began to fail because they were lending money to people and giving out withdrawals with money they did not have. Banks even invested all their money into stocks an lost peoples savings when the stock market crashed. When people lost their savings they began to spend less money. The impact on the community was disastrous and with reduced spending the economy began to fail (Bierman,1998). Causes of the 1929 Stock Market Crash states "Bankers are gravely alarmed over the mounting volume of credit being employed in caring security loans, both by brokers and by individuals" (Bierman,1998). Throughout all of the turmoil and upheaval banks were encouraged to work together. But, despite this bank failures occurred everyday day, 250 in November and 350 in December, with a eventually totaling 1,300 in all in 1930 (4 the banking crisis,…show more content…
President Hoover tried to declare that after the stock market crash that there was nothing to panic about. He tried to bring hope that the following the crash that the depression would be only for a short period of time. When in fact as the uphill climb quickly declined and the nation was in the worse depression in U.S. history. Businesses failed, wages were cut, people found themselves unemployed and retail prices fell. Farmers also struggled to keep their head afloat and the stock markets continued to

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