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Stock Market Crisis: What Lead Up To The Great Depression

1223 Words5 Pages

On September 5, 1929 economist Roger Babson gave a warning ‘Sooner or later, a crash is coming, and it may be terrific’. Over the next few weeks the prices began to move downward. In the last hour of trading on October 23, the stock prices began to fall sharply.The next day, known as Black Thursday, saw prices drop drastically (Babson,5). By the time it was all over the parent Roger Babson was right about the Stock Market Crash.

What lead up to the stock market crash? The 1929 Stock Market crash was a result of various economic imbalances and structural failings (Pettinger,1). Here are some of the reason why the stock crash: Buying on the margin,Irrational exuberance,Mismatch between production and consumption and ETC (Pettinger,3). The stock …show more content…

The Great Depression started in 1929. On March 25. Many investors were wiped out, since they had borrowed money from their stockbrokers. When the market fell, the brokers called in their loans. There were no laws that prevented banks from investing their customers' deposits. Families lost their entire life savings (Amadeo,1). The Great Depression was hard time on our country no had the money or was earning money so people couldn't pay for land ETC which meant lots people went bankrupted.
What was happening with the our country during the crash and Great Depression? By 1933, nearly half of America's banks had failed.Unemployment was approaching 15 million people, or 30 percent of the workforce (Stock Market Crash of 1929,4). During the great depression everyone was suffering if that meant no job for money or loss of you money, because your bank went bankrupt.
What brought the country out of the Great Depression? World War II provided the stimulus that brought the American economy out of the Great Depression. The number of unemployed workers declined by 7,050,000 between 1940 and 1943, but the number that join in military service rose to 8,590,000 (Smiley,23). World War II was good thing for our country, because it provided support and jobs to dig us out of …show more content…

shares crashed by a third on the New York Stock Exchange. More than $25 billion in individual wealth was lost. Later, three thousand banks failed, taking people's savings with them. Surviving eyewitnesses describe the biggest financial catastrophe in history. The stock market rose and investors piled in, borrowing money to cash in on the bubble. In 1928, the market went up by 50 per cent in just 12 months. The crash was followed by a devastating worldwide depression that lasted until the Second World War. Shares did not regain their pre-crash values until 1954 (Bos,3). During this time people were in desperate needs for some money, and they willing trade stock borrow money just because they didn't have

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