29 oct. 1929 - Stock Market Crash
Description:
During the post war era, Americans were overwhelmed by the growth of their economy with high prices in the stock market sold and bought daily. They believed this would continue into the future which would push their economy into higher amounts, however this was just a bubble, ready to burst at any moment. On September 1929, when the needs and demands of stocks declined, the stocks were lowering the price in a straight line which made investors fear. As the amount of trade decreased, the once flourish market instantly became full of depression and chaos, of the Americans fearing their nation would decline in its position in the world. On October 29, in one day, 16 million stocks were sold, meaning the market finally couldn’t withstand its bubble and bursted. This economic crash resulted in 25% of unemployment rate, which meant less money was traveling in the market. A decline in the prices of production also came with a decrease up to 42% at most. Banks and companies went bankrupt resulting in a very unstable society for America. Not only their own domestic market, America’s trading partners in Europe had also been effected by this crash. Investors demanded to withdraw their money from the European market along with bond owners gaining back their loans. Triggering the whole world’s economic market gradually, the world went into the period of Great Depression, an era of depression and pessimistic views about the future beyond.
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