29 Okt 1929 Jahr - Black Tuesday (Economic)
Beschreibung:
Who:
New York Stock Exchange, Toronto Stock Exchange, John Maynard Keynes (British economist).
What:
New York Stock Exchange had massive declines in trade on October 24, 1929 (Black Thursday). 12.8 million shares were sold. Thousands of accounts were wiped out before bankers and industrialists were able to stop it. This extended all the way to Toronto. John Maynard Keynes lost all his own investments by the end of the year. Investors traded 16.4 million shares on Tuesday. They lost $14 billion ($199 billion 2017 dollars) on the New York Stock Exchange. The Dow Jones Industrial Average dropped by 12% causing investors to lose $30 billion dollars. The New York Times industrial average was plummeting. This caused a strong year's gains to be eliminated.
Where:
Wall Street, New York, and Toronto.
Why:
The crash was caused by the way investors were playing the market in the 1920s. The new method for buying stocks (called buying on margin) where investors could order huge amounts of stock with only 10% or 20% down. Investors used the money they borrowed from their brokers. Brokers called in the loans when stock prices fell. Often times, paying off the loans would wipe out peoples entire life savings.
How:
The new method of buying stocks caused the stock market to crash.
This was significant because it led to the beginning of the Great Depression. Black Tuesday was the most catastrophic stock market crash in history. Billions of dollars in stocks were lost, causing a wipe out of thousands of investors.
Zugefügt zum Band der Zeit:
The Roaring, Dirty Decades of the 20th Century
Datum:
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