Black Tuesday During The Great Depression

People at the time wanted to make money the fastest way possible and to do that many used over speculation and buying on margin in the stock market. Over speculation means to buy a stock that is risk so you could make a large profit when you sell it and buying on margin means to buy shares of a stock with borrowed money so it would be repaid when the shares are sold. The stock market crash of 1929 was just the beginning of the Great Depression. It occurred when the stock market became overbought and overvalued. On October 24, 1929, known as “Black Tuesday” when the market opened at 11% lower than normal, thousands of investors wanted to sell stock and they began to place bids which was above the market price out of a panic. That following Monday, the market finished down 13% with losses that was aggravated by margin calls. The next day, which was “Black Tuesday”, the bids disappeared and the market fell at another 12%. The market then descended lower and lower until it hit the bottom in (Investopedia). The reason that the stock market

The economy began to improve once again in 1938, but this second severe contraction reversed many of the gains in production and employment and prolonged the effects of the Great Depression through the end of the decade. The hardships of the Great Depression charged the rise of the political movements in a variety of European countries. When President Roosevelt proceeded to give his full support of Britain and France in the fight against Germany including the Axis Powers in World War II. Manufacturing then began to go up and because of that it produced more jobs and caused reducing of the unemployment rate. The Great Depression finally had ended when the United States began to focus and put all of its attention on World War II