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 failures are thought to have influenced the Stock Market Crash causing such a huge impact on the United States and inevitably lead to the Great Depression (Thackeray & Findling, 2011).
First, in September 1929 the price of stock reached an all time high of 386 , the highest it
had been in over 10 years. But, by November it had dropped 40% to 230 and as the prices fell
and interest rates were changed several time in an attempt to fix stock market, investors began to
panic when they lost 70% of its value. This is when they franticly began trying to sell their stock
and the reality of the stock market being over inflated was quickly coming into perspective.
According to What Happened? 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.
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...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 plummeted.
In closing, The Stock Market Crash of 1929 was seen as a influential crash in the market that began in 1929 where many people foolishly invested their money, mortgaged their homes and eventually lost all of their life savings. Banks began to fail leaving no where for people to cash is their stocks or withdraw their money. Checks were no longer a valid form of payment for fear that they would not cash. Rumors began to fly of people jumping from buildings committing suicide, but was later determined to be untrue. The Stock Market Crash of 1929 eventually sent the country in to what was known as the worst depression in U.S. history.
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