Wall Street Crash

Causes, Events and Consequenses of the Wall Street Crash

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  • The Wall Street Crash 29th October 1929
    • Difference between Rich and Poor
      • Despite the lavish lifestyle in cities, people such as farmers, black Americans, immigrants and workers in old industries were still in poverty.
    • Speculation
      • People buying stocks on credit
    • Market Saturated
      • Everyone was involved in stocks
    • Over-production
      • Efficient industry meant that there was too much to sell
    • Trade
      • In response to the Fordney-McCumber Tariff Laws, Europe imposed a tact on US goods
    • Small Banks
      • Did not have the resources to cope with the rush for money after crash
    • 19th October- Heavy trading as prices begin to fall
      • 21st October- Prices fell but increased as people still wanted to buy
    • Loss of $30 billion in 1 week
    • 12 million people out of work
      • 12,000 unemployed every day
      • By 1933 unemployment risen to 25%
    • 20,000 companies bankrupt
      • 1616 banks
      • By 1933, wages fallen by 60%
      • By 1933, industrial production fallen by 40%
    • 1 farmer in 20 evicted
    • 23,000 people committed suicide in one year
  • Causes
  • 22nd October- Prices rose slightly
    • 23rd October- Heavy selling in cars spread to other stocks. Prices fell. People decided to sell all. People who had bought things "on credit" were told to pay it back and had to sell in order to do so
      • 24th October- Black Thursday. 12,894,60 shares traded in 1 day. Prices dropped. Panic set in and there was a scramble to sell all
    • 21st October- Prices fell but increased as people still wanted to buy
  • 25th October- Top bankers met and decided to support market. Prices steadied and even rose.
    • 26th October- President Hoover gave a speech
      • 28th October- Heavy trading. Prices drop.
        • 29th October- 16,410,030 sold. Buyers were not found. Values lost. Panic.
          • Wall Street had Crashed
    • 24th October- Black Thursday. 12,894,60 shares traded in 1 day. Prices dropped. Panic set in and there was a scramble to sell all
  • Events
  • Consequences

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