The Wall Street Crash

The Wall Street Crash

- When the Republican Herbert Hoover became president in March 1929 the economy was still booming.

- Hoover had promised a continuation of the boom, 'a chicken in every pot' and said 'the poor man is vanishing amoung us'.

- Within six months the situation was totally different

- In June 1929 the effects of overproduction were felt as some industries cut back on production.

- In September some investors began to worry about prices and predicted a crash anytime soon.

- This led to some people selling their shares but by September the stock market had recovered.

- The banks helped to restore some stability by buying up vast numbers of shares

- In late October panic set in on the 24th October 1929 13 million shares were sold on the Wall Street stock exchange in New York.

- The banks could no longer intervene…