Stock Market Crash of 1929
The day the stock market crashed, October 29th, 1929, is now known in infamy as Black Tuesday. "The Reasons Stocks Crashed in 1929" by Harold Bierman Jr. says that there were many events that led up to the Stock Market Crash. On October 24th, 1929, the stock market fell 9% during the day, which was a huge deal back in that time when a lot of people had money invested in the Stock Market. After this decline there was a selling alarm, as everyone wanted to get his or her money out of the stock market. Bierman concludes that the stock prices were too high in October of '29 and that a crash in the market was bound to happen. "The Reasons Stocks Crashed in 1929" by Harold Bierman Jr. reviews a small set of possible causes for the crash and reaches specific conclusions about the events that led to the biggest stock market crash in history.
The 29th of October will always be known as Black Tuesday but it was not the only day the stock market struggled. The New York Times of October 4th headed a page one article "Year's Worst Break Hits Stock Market", but almost all reported business news was still very optimistic. On October 23rd the market declined by four billion dollars and if the events of the 29th did not happen then the 23rd would have gone done in history as the major stock market event. The events of the 23rd were dwarfed by the proceedings of the morning of the 29th when it was said that within a few hours of the stock market being open that day, the prices had fallen so low that they wiped out all of the gains that have been made in the entire previous year.
Since the stock market was viewed as an indicator of the American economy, the public's confidence in the economy was shattered. Between the "Black Tuesday" and November 13th over 30 billion dollars had disappeared from the American Economy. Production in the United States had fallen nearly 50% from its peak in August of 1929. It took nearly twenty-five...
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