Causes Of The Stock Market Crash Of 1929 Essay

The Stock Market Crash of 1929 What was thought to be an immense time quickly plummeted, and took a turn for the worst. Investing money into something can be intensely hazardous. Just a few days prior to the Stock Market Crash of 1929, the stocks were at a superb state. Many people were buying into the stocks by getting loans from the banks. The people planned to resell the stock and eventually pay back the banks. Unfortunately, that was not the case. Stock prices began to drop and investors started to panic, thus beginning the Stock Market Crash. The Stock Market Crash was a colossal event that resulted in nearly half of America’s banks failing, leading to unemployment for fifteen million people, causing world trade to plummet, all resulting to the Great Depression.
Many people took this opportunity to buy into the Stock Market. Countless amount of people thought they could make a profit off of their stocks. Unfortunately, the market started dropping and investors started to panic. Many tried to sell their stocks before the value got any lower (¨The Economic Causes and Impacts of the Stock Market Crash of 1929¨). Everyone was in shock and did not know what to do. As the stocks kept dropping, fortunes of the investors practically disappeared overnight. Traders were going crazy, several even got into fights because of their panicking (Galbraith 89). Suicide rates were increased by approximately 50% during the crash and entering the early 30’s. Several prominent investors committed suicide in the coming weeks of the event. The banking industries collapsed and could not collect on loans. Banks across the country began failing in the early 1930’s. The country was in a massive mess and did not know how to get out of