The Historic Stock Market Crash Of 1929
The stock market crash of 1929 and what it was still stands today as one of the most historic financial crashes in US history. Many historians look at the crash and can confidently say that it was due to a number of actions and no small amount of inaction that led to those four days creating the beginnings of the Great Depression that would quickly follow.
Kicking off on Thursday, October 24, 1929, the following Friday, Monday and Tuesday would come to be known as the four black days. This means that Black Thursday preceded Black Friday, which preceded Black Monday and Black Tuesday. Both Monday and Tuesday dealt hammer blows to an already mortally wounded stock market. The lack of concrete action those four days hurt the stock market for nearly a decade. Panic and alarm had set in by late Tuesday, and the next day saw a run on the banks that was historic in its proportion. Much of the blame can be laid at the feet of leaders on Wall Street and in the stock markets, as a matter of fact.
It was over a month before some form of rational thought could be restored to the actions of the market, though it took many years after that to return to normal. During the decade preceding the crash, there was a great deal of wealth being created and much exuberance within the markets themselves. Many people who had no business investing were out there speculating on shaky stocks and extending themselves too much. Risky stocks were the preference over safe vehicle like savings bonds and the like. The markets eventually had to come down and they did, beginning October 24.
The serious plunge in stock prices began that day and just couldn't be stopped. Most historians and economists maintain that a lack of concrete action on the part of Wall Street leaders and even the federal government helped exacerbate the fall in stock prices. In fact, some historians say that such an action created a forest fire during the four days of stock market price declines. There was no real regulation of the markets back then, though that is different today.
The stock market crash of 1929 also helped contribute to the effects of what came to be called the Great Depression. There is some debate as to what came first (the Great Depression or the stock market crash), but there can be no denying that the crash itself was the single most memorable crash of a US stock market in the nation's history.
Today we can learn much from the great stock market crash of '29. There are similar parallels with the great crash and our current economic circumstances. It is not likely that we will experience anything as severe as the great depression, but it's important to learn from our past mistakes. Unfortunately, human nature is what it is, so we continue on without care, but maybe, just maybe we can these great events and look to a bright future.
You can find more infromation on the historic stock market crash of 1929 by reviewing the site. You will also find many invesmtemnt relate topics like U.S. savings bonds and more.
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