The Stock Market Crash of 1929, or also known as, The Great Wall Street Crash of 1929 destroyed American economy and was the main factor to the start of The Great Depression.It was the end of World War 1 and American had new confidence and were becoming very optimistic. New inventions such as the radio and the air plane made anything and everything seem possible. It was a time that many Americans started becoming smarter I think and started investing their money in, the stock market.
During the middle of the 1920's the stock market prices increased rapidly which made more and more people start to invest. By 1928 the stong bull market boom had begun! Throughout June to August the stock market prices reaced their highest levels in history. " On September 3 , 1929, the stock market reached its peak with the Dow Jones Industrial Average closing at 381.17." People we thought thing could only get better and there was no way the market could fail. For the most part they we right until stocks began to fluctuate into September and then finally the crash on Black Thursday.Many people who invested their money in the stock market did it " on margin " which means they put 10 to 20 % in and the bank would loan them the 80 to 90% This is what I think was the reason The Great Depression began, because if the price of the stock plummeted the broker or bank would send a " margin call " which means the buy must repay the money immediately.The Great Derpression started from 1929 and lasted till around the 1939. It was a time in the American life where people were no longer investing their money but trying to find and hold on to the money they had left. The money they had once invested and given to the banks for stocks were now gone and there was nothing left. In 1929 and throught the 1930's 9,000 banks failed and closed. Another reason I research that there was a great depression was of major drought conditions. The drought in the Mississippi Vallel in 1930 made it hard for farmers to pay of their margin calls of bank loans and have enough money to survive and provide for their families. Therefore the farmers didnt have money to buy anything and either did anyone else at the time which lead to a slow economy and poor conditions for business owners.
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