Stock Market Crash, Black Tuesday, Oct. 29, 1929
· Dow jones industrial average collapsed
· Overproduction causes lower price
· Continued selloff took place until 1932 when the DIJA was 89% of its 1929 peak
· People threw themselves out of buildings
· Businesses go bankrupt
· Banks close
· Depression begins
· International debt
· Weak European economy
“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
- Mark Twain
- Mark Twain
“Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.”
- Richard M. Salsman
- Richard M. Salsman
Caption: "Look, Hold it... There's no room down there"
(not so)FUN FACT: Because so many people were committing suicide after the crash hotel clerks would ask guests if they wanted a room for sleeping or for jumping.
Subjunctive Question
Would the crash have been so bad or even happened if there wasn't overproduction?
Summary
The Stock Market Crash on 1929 was a crash so big that even those who were on top of the stock market game still ended up at the bottom with everyone else. This crash was caused by overproduction, and amplified by people spending money that they did not have.