Black Tuesday, Oct 22, 1929, Stock Market Crash
Notes:
Down Jones industrial average collapsed
Continued selloff took place until 1932 when the DIJA was 89% of its 1929 peak
People threw themselves out of buildings
Businesses go bankrupt
Causes:
Overproduction
Stock market (buying on margin)
Tariffs
International Debt (major issue!) American and european nations in massive debt. A weak european economy was the first signs in the 20's of the stock market crash. See some paralells with and Greece and Europe. Making sure Greece doesnt fall cause it will effect the global economy.
Weak European economy
Summary: The Wallstreet crash of 1929, also known as Black Tuesday was the most devistating stock market crash in the history of the United States. The crash signaled the beginning of a 10 year great depression the affected all Western Industrialized countries. A result of economic imbalances and structural failings.
Before the crash people were encouraged by the strength of the economy people and felt the stock market was a safe option. Some consumers borrowed money to buy shares. Firms took out more loans for expansion. People became highly indebted becoming more susceptible to a change in confidence. When that change of confidence occured in 1929, those who had borrowed were particularly exposed and joined the rush to sell shares and try and redeem their debts.
Overproduction was due too the increase in consumer products and goods being made. Purchasing reache an all time high with people promising to pay back their items on credit. However, after the 1920s ended and the economic advantage decreased, many people in debt were unable to pay back their credit which led to millions of declined loans. Overproduction happened because of the demand to meet all of the purchases. New machinery happened to make items produce faster and wages stayed the same until the prices plummented thus ruining overproduction and crashing. Conesquences of the Depression:
Unemployment.
Down Jones industrial average collapsed
Continued selloff took place until 1932 when the DIJA was 89% of its 1929 peak
People threw themselves out of buildings
Businesses go bankrupt
Causes:
Overproduction
Stock market (buying on margin)
Tariffs
International Debt (major issue!) American and european nations in massive debt. A weak european economy was the first signs in the 20's of the stock market crash. See some paralells with and Greece and Europe. Making sure Greece doesnt fall cause it will effect the global economy.
Weak European economy
Summary: The Wallstreet crash of 1929, also known as Black Tuesday was the most devistating stock market crash in the history of the United States. The crash signaled the beginning of a 10 year great depression the affected all Western Industrialized countries. A result of economic imbalances and structural failings.
Before the crash people were encouraged by the strength of the economy people and felt the stock market was a safe option. Some consumers borrowed money to buy shares. Firms took out more loans for expansion. People became highly indebted becoming more susceptible to a change in confidence. When that change of confidence occured in 1929, those who had borrowed were particularly exposed and joined the rush to sell shares and try and redeem their debts.
Overproduction was due too the increase in consumer products and goods being made. Purchasing reache an all time high with people promising to pay back their items on credit. However, after the 1920s ended and the economic advantage decreased, many people in debt were unable to pay back their credit which led to millions of declined loans. Overproduction happened because of the demand to meet all of the purchases. New machinery happened to make items produce faster and wages stayed the same until the prices plummented thus ruining overproduction and crashing. Conesquences of the Depression:
Unemployment.