...Juleanna Rios-Monge Period:4 Mr.Ploude Black Tuesday 1929 Topic: Black Tuesday 1929 Question: What happened on Black Tuesday? Thesis: The Stock Market Crash of 1929, also known as Black Tuesday, caused many investors to lose billions of dollars which caused a large number of unemployment and helped lead to the Great Depression. The Stock Market Crash of 1929, also known as Black Tuesday, caused many investors to lose billions of dollars which caused a large number of unemployment and helped “lead to the Great Depression.” The Great depression did not end until 1939 the same year as World War Two helped boost jobs availability in the workforce and in building machinery. One of the worst lost in shares would be in The Wall Street Journal....
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...Name Professor Course Date: Analysis and Argument Essay on ‘Black Tuesday’ Stock Market Crash Financial systems both money markets and capital markets all across the world have always been susceptible to shocks of varying proportions. The stock markets for instance are very vulnerable to daily variations in the forces of demand and supply. That is, when supply of a given stock outweighs its demand, the price of that stock is expected to fall and when demand outstrips supply, the price is expected to rally. Though these changes are viewed as normal, at times the prices plummet to a level that it sets in a wave of panic among the investors (Rothman, Par 1). These panicking investors rush to liquidate their stocks leading to further dip in prices. Such huge falls in stock prices can lead to what we call a stock market crash. One of the most documented crashes in the world is the United States stock market crash of 29th October 1929 popularly known as the Black Tuesday. On that dreaded Tuesday Dow Jones had shed 13 % while eight weeks prior to that the bourse had lost 40 % of its value (Lancaster, par 2). This paper aims to analyze what happened on, before and after that Tuesday, what could have caused the crash and what measures can be taken to prevent future crashes. Prior to the 1929 crash, the United States of America had experience a period of stable economic growth. This was characterized by a period of improved industrial production, for instance mass production of cars...
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...The Great Depression lasted from 1929 to 1939 and furthermore was the worst economic collapse in America’s history. The depression was a domino effect of stock prices appearing much higher than their actual value, people across the nation buying on credit, and unsold goods accumulating. These factors put into consideration swept America from the roaring twenties to the Great Depression. Cinderella Man is a true story that adventures us through boxer James Braddock’s life, and his sojourn through the depression by helping us understand the hardships people faced during those times. Cinderella Man portrayed the harshness of the Great Depression through James Braddock’s trials and those of the people of the Great Depression. Prior to the Depression, there was a time of luxury as well as prosperity known as the Roaring 20s. During the Roaring 20s, our nation’s wealth nearly doubled, women gained the right to vote, the economy appeared to be upwards of flawless. In the onset of the film, Braddox and his wife are distinctly content with their lives, their luxurious clothing, and their extensive house. The early and mid...
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... came the long-lasting, terrifying, Great Depression. The Great Depression lasted from 1929-39. A decade of economic downfall, stock market collapses, and bank failures. The Depression is well-known to this day, and has changed how the U.S. Federal Reserves system works also. The stock market had a huge role in causing the Great Depression. It all started on a day, called Black Tuesday. On that Tuesday, October 29th, 1929, the steepest drop in the stock market happened. The stock market lost $15 billion. During that month, Americans lost a total of $30 billion, averaging up to each american working a year for free. When stock markets have a decrease in price, it is called a Bear market, which is what was going on during the depression. Before that, the roaring 20s, the markets were having a Bull market, meaning prices of the stocks were increasing, and people were gaining money. People were buying on the margin, meaning that they were paying the margin and borrowing the balance from a bank. Another cause of the Great Depression was the banks. They were making poor investments. All during the 1930’s there were over 9,000 banks that closed. They had a bank run, meaning that they panicked and ended up closing because they had no more money. People went to the banks to take out all of their money they had in the banks because of the stock markets crashing and they needed/wanted all of their cash. Eventually the banks ran out of money, and people didn’t get the amount they had...
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...ANNOTATED BIBLIOGRAPHY Research Question: How the credit system and market speculation lead to the infamous Wall Street crashes of 1929 and how they were the main causes of the Great Depression. The Sources: 1. Bierman, Jr., Harold. "Great Crash of 1929." Grolier Multimedia Encyclopedia. 2010. Grolier Online. 21 Feb. 2010 . * This database source gives a brief overview of the Great Crash of 1929, its causes, its effects and the various statistics and figures associated with the Great Crash. This is a secondary source and is reliable as it is written by a professor of Business Administration at Cornell University who has cited credible sources. The source has a non-partisan view point as it details more facts than individual perspective; however any biases that existed would eventually be counterbalanced by other sources. The main limitation of this source is that it is a brief overview of the causes of the Great Crash. The facts presented in this source which will further substantiate my argument in the research paper. 2. Coolidge, Calvin. Address. State of the Union. Capitol Hill, Washington D.C. 4 Dec. 1928. State of the Union Address Library. 4 Mar. 2009. Web. 16 Mar. 2010. . * This speech was given by President Calvin Coolidge on Dec 5, 1928. This speech almost a year before the Great Crash of 1929. He addresses the American public and praises them for their virtues and also glorifies the extent of prosperity in America by claiming that it is something...
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...The first crash that stock in U.S has spent was the time in the the Great Depression. The United State economy entered the Great Depression in 1929, many industries have collapsed. But at the first, stock had continued to rise and reached to the highest number of share ever. When consumer confidence disappeared in the wake of the collapse of the stock market, the decline in investment spending and factory leaders and other businesses to slow production, construction and start firing their employees. For those who were lucky to still work, salary reduction and reduced purchasing power. Many Americans are forced to buy on credit falling into debt, and the number of foreclosures and repossessions rising continuously. Adherence to the gold standard, joining countries around the world in a fixed currency exchange, help spread the crisis from the United States throughout the world, especially in Europe. The second time was in 1987. In the crash of 1987, this...
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...Great Depression The Great Depression was a tragedy for the whole world, but it mostly damaged specifically one country, which had the best economic system in the world at that time - United States of America. The Great Depression was an economic collapse from 1930s to 1940s. This economic disaster was brought to life because of a huge amount of problems. There even were different types of problems, such as social, political, economic, or military problems. All together, they created this economic collapse. The official start of the Great Depression was originated in United States, during the day of October 29, 1929, referring to the article in New York Times. During that day, which was called Black Tuesday, a big economic problem appeared - the stock market crash. A huge amount of people lost a lot of their money just in one day. Prices on stock market fell down very quickly and people did not even get the money that they invested, they lost even more than half they invested. Prices kept falling - people kept losing their money. Secondly, with this crash, the banking system collapsed too. "The banking structure was inherently weak", wrote John Kenneth Galbraith in The Great Crash, which actually was one of the causes of the collapse. This situation appeared because people could not pay their money for using credit system, and so banks were 'destroyed' - "The weak destroyed not only the other weak, but weakened the strong...", says John Kenneth Galbraith. With these two incredibly...
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...The Great Depression1929 Contents 1.Introduction 2.causes of great depression 3.Consequences of the depression. 4.Conclusion Introduction The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21stcentury as an example of how far the world's economy can decline. The depression originated in the United States, triggered by the stock market crash of October 29, 1929 (known as Black Tuesday), but quickly spread to almost every country in the world. The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, and international trade plunged by half to two-thirds. Unemployment in the United States rose to 25% , and in some countries rose as high as 33%. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most. Countries...
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...Great Depression was the most severe depression ever experienced by the industrialized Western world. “http://www.britannica.com” It preceded the decade of World War II. North America, Europe, and other industrialized areas were affected. This economic drop started in 1929 and went on till about 1939. “http://www.britannica.com” President Herbert Hoover was in office at the start of the depression. It is said that the Great Depression began with a catastrophic collapse of stock-market prices in the New York Stock Exchange in October 1929. “http://www.english.illinois.edu” This is also known as Black Tuesday. ”http://topics.nytimes.com” Some call it Black Wednesday or Black Thursday, because it ran over a three day span. The following three years the stock market prices continued to decrease. Towards the end of 1932 the market had dropped about 20 percent of what it was in 1929. “http://www.english.illinois.edu” This decline hurt thousands of individual investors, forcing them to close. Not only did this collapse affect individual investors, but it strained banks and other financial institutions. This strain forced thousands of banks in the United States to close. “http://www.topics.nytimes.com” During this depression unemployment rates rose up to 25 percent. Other countries rose up higher reaching 33 percent. Cities that depended on heavy industries were hit harder and in some countries it halted them. In the mid 1930’s some economies started to recover. Interest...
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...DEPRESSION AND THE STOCK MARKET CRASH An Introduction The stock market crash The stock market was created on 1792 to allow stocks and bonds to be traded “bought and sold”. A “stock market crash” is the steep fall of the prices of stocks due to widespread financial panic. America experienced an era of great peace and prosperity during the 1920s. After World War I, the so-called “Roaring Twenties” economic and cultural boom was fueled by industrialization and the popularization of new technologies such as radio and the automobile. Air flight was becoming common as well. The Dow stock average soared throughout the Roaring Twenties and many investors aggressively purchased shares, comforted by the fact that stocks were thought to be extremely safe by most economists due to the country’s powerful economic boom. Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage. For every dollar invested, a margin user would borrow nine dollars worth of stock. The use of leverage meant that if a stock went up 1%, the investor would make 10%. Unfortunately, leverage also works the other way around and amplifies even minor losses. In 1929, the Federal Reserve raised interest rates several times in an attempt to cool the overheated economy and stock market. On Thursday, October 24th 1929, a spate of panic selling occurred as investors began to realize that the stock boom was actually an over-inflated...
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...The Great Depression The great depression was a dramatic, world wide economic downturn beginning in some countries as early as 1928. The beginning of the great depression in the United States is associated with the stock market crash in October 29, 1929, known as Black Tuesday and the end is associated with the onset of the war economy of World War II, beginning around 1939. The depression had devastating effects in both the industrialized countries and those which exported raw materials. International trade decline, personal incomes, tax revenues, prices and profits. Cities all around the world were hit hard. Construction was really slow and so was farming and rural areas suffered as crop prices fell by 40 to 60 percent. The great depression ended at different times in different countries. The great depression was not a sudden total collapse. The stock markets turn upward in the early 1930’s. Together government and business actually spent more in the first half on 1930 than the previous year. Consumers, many of those whom had suffered severe losses in the stock market the prior year cut back on there expenses by 10 percent. In the 1930, credit was available at low rates. People did not want to add new debt by barrowing. By May 1930, auto sales began to decline to below levels of 1928. Prices in general began to decline. Although wages were held for the moment they began to drop in 1931. Conditions were worse in the farming areas. By late 1930 a steady decline...
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...workers for the first time). Industrial output expanded very rapidly. * Sales were often promoted through buying on credit. However, by early 1929, the steam had gone out of the economy and output was beginning to fall. * The stock market had boomed to record levels. Price to earning ratios were above historical averages. * The US Agricultural sector had been in recession for many more years * The UK economy had been experiencing deflation and high unemployment for much of the 1920s. This was mainly due to the cost of the first world war and attempting to rejoin the Gold standard at a pre world war 1 rate. This meant Sterling was overvalued causing lower exports and slower growth. The US tried to help the UK stay in the gold standard. That meant inflating the US economy, which contributed to the credit boom of the 1920s. Causes of Great Depression Stock Market Crash of October 1929 During September and October a few firms posted disappointing results causing share prices to fall. On October 28th (Black Monday), the decline in prices turned into a crash has share prices fell 13%. Panic spread throughout the stock exchange as people sought to unload their shares. On Tuesday there was another collapse in prices known as 'Black Tuesday'. Although shares recovered a little in 1930, confidence had evaporated and problems spread to the rest of the financial system. Share prices would fall even more in 1932 as the depression...
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...Causes of the Stock Market Crash of 1929 It was a time of great economic growth in the United States after World War I. The economy was growing rapidly, fueled by industrialization and the rapid development of new technologies such as the automobile, electricity, telephone, aviation and radio. Many people and businesses began investing in the stock market at this time. The stock market is the organized trading of stocks. The owning of stocks gave people partial ownership of a company while infusing cash into the company. In return, people earned money on their investment as the company grew. The stock market provides financial support required by large business to establish and expand their enterprises. This in turn allows companies to grow and increase employment, provide a community tax base, and other financial benefits for the people and the economy. In the 1920’s the stock market boomed. During the 1920’s people were enthusiastic and more willing to take risks. They brought this attitude to the stock market, causing stock prices to increase exponentially. However, the severely overpriced and unaffordable stocks and willingness of the people to carelessly invest their money lead to one of the darkest days in U.S. history: October 29th, 1929. This is the day the stock market crashed, known in infamy as Black Tuesday. The stock market crash of 1929 was caused by numerous flaws in economic policies and actions taken by banks and investors. This major collapse would eventually...
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...every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease. Stock prices had been rising steadily since 1921, but in 1928 and 1929 they surged forward, with the average price of stocks rising over 40 percent. The stock market was totally unregulated. Margin buying in particular proceeded at a feverish pace as customers borrowed up to 75 percent of the purchase price of stocks. That easy credit lured more speculators and less creditworthy investors into the stock market. (http://www.gusmorino.com/pag3/greatdepression/) The Federal Reserve board warned member banks not to lend money for stock speculation because if prices dropped, many investors would not be able to pay back their debts. No one listened. The stock market began sliding in early September, but people ignored the warning. Then on "black Thursday" (October 24, 1929) and again on "black Tuesday" (October 29, 1929) the ball dropped. More than 28 million shares changed hands in frantic trading. Overextended investors, suddenly finding themselves in heavily in debt, began selling their stocks. Many found that no one would buy anything at any price. Overnight, stock values fell from a peak value of 87 billion dollars to 55 billion dollars. (http://www.geocities.com/greatdepressioninfo/classic_tan.html) The crash was felt far beyond the trading floors. Speculators...
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...The collapse of the American economy that was manifested in the US stock market collapse, and the inefficient policies of the Federal Reserve that were unable to solve the situation, but actually made it worse, and the international economic relations which limited economic cooperation and trade were all factors that contributed to the Great...
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