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How Did The Wall Street Stock Market Crash Of 1929

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Imagine being one of the world's greatest leaders or richest businessmen in the year of 1923 and have all your hard word work and dedication taken all away from you. Imagine dying penniless after living for five years on borrowed money or dying broke in a foreign land, when you were once considered the most powerful person in the world. Would you go insane or commit suicide, like many of the Titans of 1923? I doubt if anyone can verbalize what authentically transpired to the richest people in 1923 but the Wall Street’s Market Crash was definitely the cause of their fall. The Wall Street Stock Market Crash of 1929 was the greatest crash in Wall Street history, where 19,000,000 shares change and prices tumble like an avalanche.The cause of the …show more content…

A lot of people bought shares of public companies with the expectations of making more money. So people started to borrow money from a broker to invest in stocks. Which is called buying on a margin, it’s a very perilous decision. There was great hope. America had just emerged from World War I with the economy intact. We were the most vigorous country in the world. The dollar was over all the other currencies. We had a very popular president in the middle of the decade, Calvin Coolidge, and an even more popular one elected in 1928, Herbert Hoover. The economy was transmuted in this incipient America. It was the dawn of the consumer revolution. Inceptive inventions, mass marketing, factories turning out astounding products like rayon, radios, underarm deodorant, air conditioners. The Stock market was booming in the 1920’s! So Stock prices went up and people who thought investing in stocks was too risky began investing because it was the era of enthusiasm to change the way of life and people were extremely confident and began investing in stocks more and more. Companies realized that so they made the price go up. Which caused people to rely on buying on margin. People saw the stock market as a short term investment, but not a long term investment. Then people thought of a way to make easy money by buying a stock and selling it when the prices got too high. The stock market was the biggest conversation in America and everyone was interested

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