Why Did The Stock Market Crash Of 1929
Stock market crash of 1929
The stock market crash of 1929. Lots of people ask the question, how did it happen? Or What was the after math of the crash? Today these questions will be answered, and you will become a little bit more knowledgeable on the stock market crash of 1929. In my opinion the 1929 crash was much bigger than 2008 and caused more damage to the economy.
Let’s talk about why the stock market crashed in 1929 as well as the aftermath of it. On October 29, 1929 ( Black Tuesday ) 16 million shares were traded in a single day on the new York stock exchange. In the 1920’s there was rapid stock market expansion reaching it’s peak in 1929. In September of 1929 stock market prices began to decline and then on October 18th the fall began. People started to panic and on October 24th a record 12,894,650 shares were traded. Banks and investment companies tried to stabilize the market by buying enormous amounts of stock. Which lead to a rally on Friday. But on Monday the market went into freefall and then black Tuesday the market completely collapsed 16,410,030 shares were traded that day and billions of dollars were lost, taking thousands of investors, stock …show more content…
The economy lost 17,000 jobs, the first time since 2004. The Dow flung off the news and stayed between 12,000 and 13,000 until march. In July 2008, the subprime mortgage crisis spread to government-sponsored agencies Fannie May and Freddie mac. They required a government bailout. The treasury department guaranteed $25 billion of their loans and bought shares of Fannie’s and Freddie’s stock. The FHA guaranteed $300 billion in new loans. The Dow fell closing at 10,962,54 on july 15th. It regrouped and stayed above 11,000 for the remainder of the summer. September of 2008 the month started with chilling news. On September 15th Lehman brothers declared bankruptcy. The dow dropped 504.48
The stock market crash of 1929. Lots of people ask the question, how did it happen? Or What was the after math of the crash? Today these questions will be answered, and you will become a little bit more knowledgeable on the stock market crash of 1929. In my opinion the 1929 crash was much bigger than 2008 and caused more damage to the economy.
Let’s talk about why the stock market crashed in 1929 as well as the aftermath of it. On October 29, 1929 ( Black Tuesday ) 16 million shares were traded in a single day on the new York stock exchange. In the 1920’s there was rapid stock market expansion reaching it’s peak in 1929. In September of 1929 stock market prices began to decline and then on October 18th the fall began. People started to panic and on October 24th a record 12,894,650 shares were traded. Banks and investment companies tried to stabilize the market by buying enormous amounts of stock. Which lead to a rally on Friday. But on Monday the market went into freefall and then black Tuesday the market completely collapsed 16,410,030 shares were traded that day and billions of dollars were lost, taking thousands of investors, stock …show more content…
The economy lost 17,000 jobs, the first time since 2004. The Dow flung off the news and stayed between 12,000 and 13,000 until march. In July 2008, the subprime mortgage crisis spread to government-sponsored agencies Fannie May and Freddie mac. They required a government bailout. The treasury department guaranteed $25 billion of their loans and bought shares of Fannie’s and Freddie’s stock. The FHA guaranteed $300 billion in new loans. The Dow fell closing at 10,962,54 on july 15th. It regrouped and stayed above 11,000 for the remainder of the summer. September of 2008 the month started with chilling news. On September 15th Lehman brothers declared bankruptcy. The dow dropped 504.48