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The Stock Market Crash And The Great Depression In The Us

984 words - 4 pages

Stock Market Crash
25 billion dollars lost in 1 day, roughly 25% of the nations population was without a job, and the suicide rate skyrocketed. These are just a few factors that turned the Stock Market Crash of 1929 into the Great Depression, one of the longest and worst economic downturns of that time, according to History.com. 16 million shares were lost at the New York Stock Exchange, eliminating thousands of investors on October 29th, 1929. The Stock Market Crash impacted the United States by putting Millions of people out of jobs, and putting America in one of the deepest financial and economical holes of that time. Today, Americans are still worried it could happen again, which is ...view middle of the document...

More and more people started investing, and people didn’t have enough money to pay, so they took out a loan from a broker. Stock prices turned lower in early September of 1929. Investors were turning from “bulls to bears” in increasing numbers and they were selling short. The “Bear Market” is a market that seems to be in a long term decline, this occurs when the economy enters a recession. The “Bull Market” is when the market seems to be in a long-term incline. Therefore the stock prices will continue to rise to high numbers. On Thursday October 24th, 1929; Richard Whitney, who was the vice-president of the New York Stock Exchange and the broker for the House of Morgan made an attempt to calm things down. Brokers with more money got together, and bought stock above the current market. It worked for quite some time, but on Tuesday October 29th, the stock market fell apart. The value of stocks declined rapidly, and money was lost almost instantly. The Ignorance caused lots of panicking and unneeded stress. People started to get worried, and this lead into the “Great Depression” of 1929. This financial breakdown affected every aspect of life as an American. Those hurting during the “Great Depression” were more surprised and shocked than mad. Many Americans sank into deep depression because they were unable to find jobs, therefore they could not support their families. 7 to 8 percent of the population owned stocks. John Jakob Raskob, a rich industrialist spoke about how easy it was for americans to become rich, All you had to do was invest in stocks. The Federal Reserve System did pretty much nothing to keep track of how much money someone could take out, and use for a loan. Americans practice “buying of a margin” expanding in cash a little as 10%, to acquire it. The rest was covered by a...

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