by Derrick Fenneman
What is Black Tuesday?
Black Tuesday or Wall Street Crash of 1929, began in late October 1929 and was the most devastating stock market crash in the history of United States. The crash started the beginning of the Great Depression which affected all Western industrialized countries.
What caused Black Tuesday?
Even before the crash the stock market was unstable. Many Americans purchased stock on credit. This was known as margin buying. Politicals failed to understand the problems the economy faced so they took no action to regulate the purchase and the sale of stocks. As people kept buying stocks the value of the shares bore the economy of America. On September 3, 1929 the averages prices of New York Stock exchange was at its peak then dropped dramatically.
Impact of Black Tuesday?
People paid close attention to the news, some investors killed themselves. Millions of people all over the world who owned stocks waited as stock values crashed. Peoples valuables were suddenly not worth much or anything. Jobs were hard to come across. LeRoy Hankel still remembers the crash. "There was people jumping out of three story buildings in New York" he said. There was a worldwide depression.
Where in the U.S.A?
Black Tuesday affected many people in the United States and all over the world. This event began on Wall Street, New York, New York, which is the major financial section in the United States.
Why did it happen?
After war ended people felt free to do and buy what they wanted and have a good time. People were spending so much and banks had to keep lending money out. After a while the banks had no more money to loan out and had to recall the loans. The people had no money to give back forcing them to sell their businesses and stocks which were now worth nothing.
Who is involved?
Hitler blamed the crash of the stock market on the Jews which would be another factor into leading to World War II. The president during black tuesday was Herbert Hoover. Hoover believed it was not a big deal and could not see the seriousness of the crash which would be a big mistake.
Success and failures
There were not many successes of Black Tuesday. Some of the very rich thrived off of thee bad market because they could get stuff at a very cheap price. Obviously there were many failures of Black Tuesday. It led straight into the Great Depression. Loss of money and jobs occurred, lots of suicide and panic throughout the nation.
Tuesday, October 29th, 1929, was know as Black Tuesday, the fateful day when there was a great crash of Wall Street. This marked the start of economic depression worldwide and numerous closures of organizations leading to massive loss of jobs.
1929 Wall Street Stock Market Crash