4h 19min, oct 29, 1929 y - Stock market crash
Description:
New York City’s Wall Street, a financial capital, were crowded with banks and investment companies during the Roaring Twenties, boosting stock prices. Post-war optimism about U.S. economy resulted in the saying that “stock prices have reached what looks like a permanently high plateau.” However, the optimism was actually an economic bubble, and the economy began to crash in September 1929, as people began selling stocks and less were willing to buy anymore. In October 24, almost all investors began to panic as the stock prices went straight down. However, it was not until five days later, October 29, 1929, when 16 million stocks were sold on that day, the stock market finally crashed. Even though the stock market crash was not the cause of the Great Depression, it was a catalyst leading to the final devastating event. Wiping out investors and their money, the crash resulted in the steady rise of unemployment rates, reaching to 25 percent in America, as well as the declination of production, prices, and payment, falling to 42 percent. The crash also affected markets in Europe, as the American economy disrupted world’s economies. Banks in America requested to get their oversea loans while people began to withdrew their investments in Europe. These interconnected actions finally led to the Great Depression, the longest worldwide economic depression.
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