The day in october 1929 that the stock market crashed became known as black tuesday

The Washington Post headline screamed, "Huge Selling Wave Creates Near-Panic as Stocks Collapse.

That's slightly more than a stock market correction. That worried Wall Street bankers. The stock market had already fallen nearly 20 percent since its record close of Even worse, trading volume was The intervention seemed to work.

Wall Street Crash of - Wikipedia

The Dow recovered a bit, closing just 2 percent down, at On Friday, the Dow closed higher, at But on Black Monday , it fell in light trading, to That triggered an all-out panic on Black Tuesday. By the end of the day, the Dow had fallen to It finally bottomed on July 8, , closing at In fact, it didn't reach that high again for 25 years, until November 23, Losses from the stock market crash helped create the Great Depression.

During the Roaring 20s , investing in the stock market became a national pastime. From until right before the crash, the stock market value increased by percent, or almost 20 percent a year.

Those who didn't have the cash to invest could borrow from their stockbroker "on margin. Some banks even invested their depositors' savings without telling them.

Their misuse of funds created the run on the banks that was a hallmark of the Great Depression. Banks didn't have enough to honor depositors' withdrawals. Many people only got ten cents for every dollar.

Stock Market Crash of

There were some warning signals in the spring of The Dow dropped in March, but bankers reassured investors and restored confidence. Next, on August 8, the Federal Reserve Bank of New York increased the discount rate from 5 to 6 percent. The Bank of England followed on September 26 to slow a loss of its gold reserves as a result of Wall Street investments.

Like all other developed countries , England was on the gold standard. As interest rates rose, financing for stockbroker margin loans fell. His company collapsed, and investors lost billions.

That hammered the British stock market, making U. The next precipitating factor occurred on October 3, England's Chancellor of the Exchequer called America's stock market "a perfect orgy of speculation.

Media coverage of significant stock market declines on October 3, 4 and 16 added to the market's instability. On October 19 and 20, the Washington Post focused on a sell-off of utility stocks.

The next day, the market fell again. The Times headlines screamed "Prices of Stocks Crash in Heavy Liquidation. Harold Bierman, Jr, The Stock Market Crash. Search the site GO. Markets Stock Market Bond Market Hedge Funds Commodities Market Economic Theory Supply Demand National Debt Fiscal Policy Monetary Policy Trade Policy GDP and Growth Inflation World Economy Economy Stats Hot Topics Glossary.

Great Depression - True and False Flashcards | Quizlet

Updated December 23, On Monday, October 21, the market went down again. Get Daily Money Tips to Your Inbox Email Address Sign Up.

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