Stock Market Crash!
At the begining of the 1920's the stock market began ot rise even though everyone knew it was a big risk. Every one was buying stocks teachers, maids, barbers, and the price just contiually rose. Even though many people wanted to buy stocks not everyone could becuase of the price. So people would buy them on a margin which ment that they only had to put some of there own money down on the stock and a broker would put the rest in for you. The only really huge probablem with these was that if the broker saw that he was going to possibly loose money then he could do a margin call which ment that you had to come up with the rest of the money for your stock, immediatly. This was a very bad thing becuase you would most likely have to sell your shares and then give the broker the money that he gave you to buy the stock and you probably would break even and not even make any money. That would really suck. Even though many people didnt see was that there were signs accually kind of telling us that this might happen. One of the biggest signs was that there was a mini crash on March 25, 1929. Many people started freaking out and selling there shares in companies but on banker Charles Mitchell said that his bank would keep lending money it made the people feel better so they went back to buying shares insead of selling them. Other things that happened that year or just slowly went down that year was the steel productions, house contruction, and the selling of vehicles. Many people predicted this might happen or that it would happen but most people would not even consider listening to them, so they ignored those people that would we found right in the end.
Black Thursday and Black Tuesday have gone down in our history as two of the worst days in our history in the stock market. Black Thursday happened on October 24, 1929 and Black Tuesday happend on October 29, 1929, only 5 days apart from each other. What makes these two days so important in our history? Well that is an easy question to answer one Black Thursday the stock market began to crash, when the stock prices plummeted to the ground. Everybody started selling them back in the morning but by afternoon after people had heard about the bankers going together and buying a bunch of shares to try to boost the economy and not let it crash. This helped make other people buy shares and by the end of the day the stock market was up. Even though it was up by the end of the day the amount of shares sold in wone day was up. The record had nearly doubled and was up to 12.9 million. On October 28, 1929 the stocks plummeted again, but this time no one came to the rescue and they stayed down. The next day was Black Tuesday. After everyone had heard about what happened on money they were ready to sell their shares. By the end of the day the ticker as 2 and 1/2 hours behind with the amount of people selling their shares. When everyone was selling no one was buying so there was another new record in the amount of shares sold in one day. The new record was 16.4 million shares sold in one day. This was only the begining of the crash. On November 4th, they reopened the stock market after it had been closed, they only reopened it for a few hours and peopld were still selling shares like crazy. On July 8, 1932 the Dow Jones closed at 41.22.
Effects of the Stock Market Crash on Other Countries!
The stock market crash effected many peoples lives in many coutntries. There were only about 4 countries that were really effected like the others were. These countries were France, Swizerland, New Zealand, and Scandinavia. Other countries such as England was effected by there unemployment rate going up so far that they decided to devaule and get out of gold which did not help the South Africa economy which collapsed. When our banks failed so did many other banks such as Austrilas, and Austrias. After World War One Germany borrowed money from us to try to fix their economy and country, but as our economy crashed they could no longer do that to help themselves. Personally i thought the stock market crash was accually really intersting especially how it effected the rest of the world. Which by the way was really hard to find.
Sources:
~http://history1900s.about.com/od/1920s/a/stockcrash1929.htm
~http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
~http://www.associatedcontent.com/article/1090226/how_did_the_stock_market_crash_of_1929.html?cat=3
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