Stock Market Crashes

Stock Market Crashes
To start of the Great Depression marking the end of six years of supreme prosperity for most areas of the American economy. On October 24 what is known as Black Thursday the stock prices plummet causing panic. Following this people are try to sell their stock for any price they can get. By October 29 Black Tuesday is in full swing. The stocks have completely collapsed and banks are begging for loans as a bail out. An estimated $30 billion in stock values have disappeared by the middle of November.

The Stock Market Crashing has a direct impact on employment. After this there are over 3.2 million people unemployed. When before the Stock Market there was only 1.5 million during October. Of Course President Hoover remains optimistic. Ignoring the thousands of people living in Hoovervilles stating that "all the evidences indicates that the worst effects of the crash upon unemployment will have passed during the next 60 days."

So How Did This Happen?

-The market was over valued and over brought

-It kept rising although the economic conditions were not supporting it

-Investors tried stabilizing the market by buying blocks of stock but in the end it did not work

This then produced the beginning of the Great Depression

By Joseph Stingo