stock market crash Essay - 640 Words

The Stock Market crash of 1929 has been looked at as the greatest symbol of depression is our countries history. Although the Stock Market crashing had a huge effect on the beginning of the Great Depression, there are still factors to consider when looking for a source to blame. It’s hard to put responsibility on the stock market for something so huge and disheartening. The Great Depression is seen as a slippery road downward, not a sudden jolt into hopelessness. nbsp;nbsp;nbsp;nbsp;nbsp;The Stock Market in the 1920’s had consistently seen prices climb over the last few years. By the fall of 1929 the prices of stock were severely overpriced and unaffordable. When stockholders saw the severity in the prices they all panicked and began†¦show more content†¦nbsp;nbsp;nbsp;nbsp;nbsp;The banking system of the 1920’s is not what it should have been. Today we have insurance on the money we put in the bank, so if that bank should go under, we can still have our money. This was not the case in the 20’s. If your bank closed, and many of them did, you lost all the money you had saved. No one could help you and many families ended up on the street due to this loss. nbsp;nbsp;nbsp;nbsp;nbsp;Bread lines were now crowded as people tried any way they could to feed themselves and their children. Suicide was now at a high as well. Many businessmen or farmers and really anyone else who had lost their job or business due to the times often committed suicide as the easy way out. The way out of the Depression was a long road ahead. nbsp;nbsp;nbsp;nbsp;nbsp;FDR, in my opinion, is mainly the reason that the Great Depression ended. FDR would hold â€Å"fireside chats† everyday on the radio. This was very consoling for a country who thought they were headed nowhere. It was nice to hear a man of power tell you that everything was going to be okay. He gained even more great respect after announcing the New Deal. nbsp;nbsp;nbsp;nbsp;nbsp;The first New Deal was aimed towards business recovery. He insisted that the banking industry now be regulated and developed F.D.I.C. that would insure your deposits up to $5,000. This is the same system that we use today.Show MoreRelatedThe Stock Market Crash of 19291289 Words   |  6 Pagesat home or in the bank into the stock market. People migrated to the prosperous cities with the hopes of finding much better life. In the 1920s, the stock market reputation did not appear to be a risky investment, until 1929.First noticeable in 1925, the stock market prices began to rise as more people invested their money. During 1925 and 1926, the stock prices vacillated but in 1927, it had an upward trend. The stock market boom had started by 1928. The stock market was no longer a long-term investmentRead MoreStock Market Crash of 1929835 Words   |  4 PagesThe Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on October 24, 192 9 and the downfall ended in July 1932. I always wondered what caused this calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and huge fortunes were lost. Now I can figure out just why. The research process for my report was no easy task. The simple part was choosing my topic. As soon as I saw â€Å"Crash of 1929† on the topic list, I had my mind fixedRead MoreThe Stock Market Crash Of 19291590 Words   |  7 PagesThe cause of the crash in the stock market in 1929, was an incident that occurred on October 29, which was called Black Tuesday. Investors traded 16 million dollar of shares toward the New York Stock Exchange in a day, upon that billions of dollars were lost and investors lost their business or their jobs. one of the major reason why was that car and other factory produced certain quota of cars. during the great depression people who were rich is now poor and the poor and the poorer. people wereRead MoreThe Stock Market Crash Of 19291284 Words   |  6 PagesThe Stock Market Crash of 1929 â€Å"started† on the 24th of October 1929 with 12’894’650 shares being traded; this is the same day that Richard Whitney went to the stock exchange and bought targeted shares in an attempt to stabilize the stock market. As will be made evident, this did not work. In fact, an even worse day, dubbed â€Å"Black Tuesday†, occurred on the 29th of October where 16’410’030 shares were traded. 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(1929Â…) The price to earnings ratings rose from 10 to 12 to 20 and higher for the market s favorite stocks. (1929Â…) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them toRead MoreThe Stock Market Crash Of 19291598 Words   |  7 Pagesof the 1920’s there was a large boom in the stock market. By August 1929, there was massive expansion and stock prices reached their peak. In the words of PBS, â€Å"A boom took stock prices to peaks never before seen† (PBS 1). However, all good things eventually come to an end. What must have felt like over night, the stock market crashed and this would later be known as one of the most devastating economic downturns in U.S. histor y. The Stock Market Crash of 1929 was so significant but to this day peopleRead MoreStock Market Crash Of 19291432 Words   |  6 PagesStock Market Crash of 1929 The United States was experiencing great optimism and economic growth prior to the stock market crash of 1929. The conclusion of World War I in 1918 ignited this exciting time known as the â€Å"Roaring 20’s.† The key economic factors that contributed to this time is that business’ were exporting to Europe (which was still rebuilding from the war), unemployment was low, and automobiles and other goods were spreading across America creating jobs and efficiencies forRead MoreHerbert Hoover s Stock Market Crash1974 Words   |  8 Pages1929 Stock Market Crash We’d like to thank you, Herbert Hoover/ For really showing us the way/ You dirty rat, you Bureaucrat, you/ Made us what we are today (www.stlyrics.com). These lyrics from the musical Annie place the blame for the 1929 Stock Market Crash solely on the then former president Herbert Hoover. The truth of the matter is that placing the blame for the Stock Market Crash on Mr. Hoover is very unf air. Herbert Hoover was only one of many causes of the Stock Market Crash. It isRead MoreCauses Of Chinese Stock Market Crash Essay1151 Words   |  5 PagesChinese stock market crash In the previous chapter, the researcher has covered some basic information about the stock market. Hence, in this chapter, the current situation that the Chinese stock market is suffering from and factors contributing towards this crisis will be analysed. At the end of this chapter, readers will have an idea how a market which was stable for many years could become unsteady within such a short period of time. 2.1. The definition of a stock market crash A stock market crash