A lot contributed to the crash of the stock market.

There was one point in the 1920's were the shares of the stock market were increasing, causing many people to start to invest.

The people continued to invest as they saw that the stock just kept rising and rising.

Towards the end of the 1920's everyone noticed the stocks and shares to decrease.

 

This caused panic in the

people, making them sell everything they had invested in.

Because of this controversy long term affects started to be noticed, like the demand for products made by manufactures, and the services required by services.

 

There have been ideas to of how this all could've been avoided, like if there was proper procedures to stocks and banks, which were involved in the stock market.

 

People said there should have been restrictions and regulations that came along with the stock market shares.

 

 

 

 

 

 

"Stock prices virtually collapsed yesterday, swept downward with gigantic losses in the most disastrous trading day in the stockmarket's history. Billions of dollars in open market values were wiped out as prices crumbled under the pressure of liquidation ofsecurities which had to be sold at any price. There was an impressive rally just at the close, which brought many leading stocks back from 4 to 14 points from their lowest points of the day. From every point of view, in the extent of losses sustained, in total turnover, in the number of speculators wiped out, the day was the most disastrous in Wall Street's history. Hysteria swept the country and stocks went overboard for just what they would bring at forced sale. Efforts to estimate yesterday's market losses in dollars are futile because of the vast number of securities quoted over the counter and on out-of-town exchanges on which no calculations are possible. However, it was estimated that 880 issues, on the New York Stock Exchange, lost between $8,000,000,000 and $9,000,000,000 yesterday. Added to that loss is to be reckoned the depreciation on issues on the Curb Market, in the over the counter market and on other exchanges. "

 

" Yesterday's market crash was one which largely affected rich men, institutions, investment trusts and others who participate in the stock market on a broad and intelligent scale. It was not the margin traders who were caught in the rush to sell, but the rich men of the country who are able to swing blocks of 5,000, 10,000 up to 100,000 shares of high-priced stocks. They went overboard with no more consideration than the little trader who was swept out on the first day of the market's upheaval, whose prices, even at their lowest of last Thursday, now look high in comparison. The market on the rampage is no respecter of persons. It washed fortune after fortune away yesterday and financially crippled thousands of individuals in all parts of the world. It was not until after the market had closed that the financial district began to realize that a good-sized rally had taken place and that there was a stopping place on the downgrade for good stocks. "

 

 

 

 

October 29, 1929.

The DJIA(Dow Jones Industrial Average)

fell 12% ; one of the largest one-day drops in stock market history.

In result of the drastic stock market change

more than 16 million shares

were traded in a "panic selloff."

 

 

After the stock market crash, the government knew that laws had to be changed.

Franklin Roosevelt first talked about these laws during his fireside chats.

Most of the new laws were set up in order to keep everyone's money safe in banks.

After the laws were finally established the banks were closed down until they could restore themselves.

Soon they were all open again and had new laws in order to keep everyone's money safe.

 

 

 

 

October 24th became known as "Black Thursday", which marked the beginning of the stock market crash.

The last part of the stock market crash that became part of the Great Depression lasted through the 1930's, and not ending all the way into the mid 1940's.

 

 "A similar pattern of protracted decline was the outstanding feature of the Great Depression as a whole. At first, the decline in production and employment in 1930 had the appearance of an orderly business cycle recession. There were even signs in the spring of that year that recovery might be in sight. But this was a mirage: the 17 percent reduction of manufacturing production in 1930 was followed by a 21 percent drop in 1931. The contraction continued until 1932, by which time manufacturing production was only half that of 1929. And even though production began to turn upward after 1932, the index of manufacturing activity did not reattain its previous peak until eight years later."

 

 

 

 

"A similar pattern of protracted decline was the outstanding feature of the Great Depression as a whole. At first, the decline in production and employment in 1930 had the appearance of an orderly business cycle recession. There were even signs in the spring of that year that recovery might be in sight. But this was a mirage: the 17 percent reduction of manufacturing production in 1930 was followed by a 21 percent drop in 1931. The contraction continued until 1932, by which time manufacturing production was only half that of 1929. And even though production began to turn upward after 1932, the index of manufacturing activity did not reattain its previous peak until eight years later."

 

From the cited infromation above

 

 

 

 

In 1929 the USA was on a gold standard.  This meant that incase of a stock market crash,

that the money could be replaced because it was backed up by gold.  Now, In 2008, there is

no back up currency.

 

 

 

Wall Street 1929

 

 

Present Day Wall Street

 

 

 

 

 

 

 

 

 WHAT GOES UP, MUST COME DOWN.

 

 

 

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