How Did The Stock Market Crash Of The 1920's
In the 1920’s, many American businesses were doing brilliant. The banks had millions of dollars and people felt they had so much money that no one was poor or homeless. People thought that they could get rich quickly and that America would be able to get rid of poverty. Many people thought that nothing could possibly go wrong. Well, in October 1929, the Stock Market Crash occurred. Many wonder what it was like before the crash, the effects of the crash, and what caused the crash. It was a difficult time for America and it took several years for recovery.
Before the crash, during the 1920’s, the stock market grew quickly. People thought we were done with poverty and were worry free. After President Hoover became president, everyone was …show more content…
On October 18, stocks began to fall, everyone started to panic and wanted to sell. 2.9 million shares were traded that day. As a result, billions of dollars disappeared and turned into dust. Companies lost money, people lost jobs and homes, and wages went down. Banks only had ten cents for every dollar. In the early 1940’s, WW2 helped the country’s economy. On November 23, 1954, twenty-five years later, the stock markets were finally up again.
This crash was caused by many events. Many newspapers told about get-rich-quick schemes, so people were buying more land hoping to sell it for profit. People mortgaged their homes to buy stocks. They took all the money from the banks to buy stocks. People bought on credit and couldn’t afford the payments and then couldn’t buy new things. People were buying on margin. When people spend money, they do not have it. This caused problems for the entire country.
Before the crash, people felt like they had everything. They spent more money than they had. Because people were spending money they did not have, the economy crashed. This crash led to people losing their money, their homes, and their jobs. People who felt really rich suddenly because extremely poor. It took twenty-five years for the stock market to get back to the place where it was. This was the worst crash in United States history. Hopefully, this will never happen
Before the crash, during the 1920’s, the stock market grew quickly. People thought we were done with poverty and were worry free. After President Hoover became president, everyone was …show more content…
On October 18, stocks began to fall, everyone started to panic and wanted to sell. 2.9 million shares were traded that day. As a result, billions of dollars disappeared and turned into dust. Companies lost money, people lost jobs and homes, and wages went down. Banks only had ten cents for every dollar. In the early 1940’s, WW2 helped the country’s economy. On November 23, 1954, twenty-five years later, the stock markets were finally up again.
This crash was caused by many events. Many newspapers told about get-rich-quick schemes, so people were buying more land hoping to sell it for profit. People mortgaged their homes to buy stocks. They took all the money from the banks to buy stocks. People bought on credit and couldn’t afford the payments and then couldn’t buy new things. People were buying on margin. When people spend money, they do not have it. This caused problems for the entire country.
Before the crash, people felt like they had everything. They spent more money than they had. Because people were spending money they did not have, the economy crashed. This crash led to people losing their money, their homes, and their jobs. People who felt really rich suddenly because extremely poor. It took twenty-five years for the stock market to get back to the place where it was. This was the worst crash in United States history. Hopefully, this will never happen