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…