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Was the 1920s a time of poverty?
Not until the very end; the stock market crash happened in 1929, starting the Great Depression.
How did the stock market crash?
A stock market crash is a sudden dramatic loss of value of shares of stock in corporations. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles such as the dot-com boom.The most famous crash, the Stock Market Crash of 1929, started on October 24, 1929 (known as Black Thursday), when the Dow Jones Industrial Average dropped 50%. This event preceded the Great Depression. The succeeding years saw the Dow Jones drop a total of over 85%. Richard Armour, in his satirical American history book It All Started With Columbus, remarked that the 1929 crash occurred "near the corner of Dun and Bradstreet".There was also a crash or "adjustment" on Monday October 19, 1987, known in financial circles as Black Monday, when the Dow Jones lost 22% of its value in one day, bringing to an end a five-year bull run. The FTSE 100 Index lost 10.8% on that Monday and a further 12.2% the following day. The pattern was repeated across the world.The stock market downturn of 2002 was part of a larger bear market and a Dot-com stock market bubble as well as Enron corruption that took the NASDAQ 75% from its highs and broader indices down 30%.Stock Market CrashDuring the 1920s, people invested in the Stock Market, hoping to make a profit on their investments. At the time, there was no supervision or government regulation of the Stock Market. By the end of the decade, prices of shares on the market reflected nothing more than the willingness of investors to pay those prices. Everyone expected the market to continue to rise. However, economic problems had already developed that would lead to the crash of the market. People invested in companies that were not economically sound. Businesses that appeared healthy had large inventories and could not sell enough of their products to justify the price of the stock on the market. Stock brokers gave loans, called margin buying, to people to invest in the stock market. When the brokers began to demand those margin payments, the investors did not have the money. There was over speculation by just about all the investors. At the time, even banks were permitted to invest customer's savings in the stock market. The market began to rise and fall in the fall of 1929. On October 24, known as Black Thursday, a record 13 million shares changed hands and the value of the stocks collapsed. On Tuesday, October 29, panic had set in and speculators dumped over 16 million shares on the market. But, there were no buyers for those shares. The "crash" on Tuesday created a paper loss of $30 Billion. AnswerThe actual stock market crash happened on what they call "Black Thursday" in 1929 (although there had been other critical and equally black days before that particular Thursday). At the time the stock market had absolutely no political oversight by any government department like we now have with the Securities and Exchange Commission (SEC), and stock manipulation by the big players was rampant and often ill-concealed. Small (and I mean the "ordinary working folk" started to believe that they too could buy stock, ride the coattails of the big financiers, and cash out before a stock bust. You have to remember that this was at the end of a decade of the most rampant and conspicuous prosperity and consumerism; it was (although nobody new it at the time) the end of The Jazz Age and nobody thought the good times could, should, or ever would, come to an end. The small-time players' problems started because they were allowed to buy stock with just 10 percent down; what is called buying on a margin. But, when a stock inevitably tanks as the big manipulators feel they have driven a stock as high as they can, the little guys have to come up with money or they lose the stock. And the money they put in. Some of the BIG players lost money, of course, but comparatively few of them were wiped out as the small players were. Mostly this was because they were all in on the insider dealing, and the stock the little fish was buying was stock that had been dumped by the big players who were, by now, manipulating another stock to the stratosphere. A few of them did bust of course, and a few of them took there own lives although precious few of them actually rained down from upper-floor windows as is popularly believed. That's the short answer to WHAT. The WHY is much more complex, and you'd be hard pressed to find an economist who could tell you exactly why. A good, short and easy to read paperback (considering the subject is economics) to get hold of from Ebay or Amazon or anywhere else is from the great Harvard economist John Kenneth Galbraith: "The Great Crash of 1929" published by Avon Books. Even Galbraith cannot point to a specific single reason for the crash, but there was plenty of blame to go around.
What threatened the economic good times 1920?
During the 1920s, agriculture wasn't doing so well. Farmers were having a hard time recovering from WWI because they had planted a surplus of food and suddenly had no market at the end of the war. And in 1929, the stock market crash occured and America went into a downward spiral into the Great Depression, ending the economic good times of the 1920s.
What factors may of hid the economic problems lurking below the economic boom of the twenties?
During the 1920s, agriculture wasn't doing so well. Farmers were having a hard time recovering from WWI because they had planted a surplus of food and suddenly had no market at the end of the war. And in 1929, the Stock Market crash occurred and America went into a downward spiral into the Great Depression, ending the economic good times of the 1920s.
Was the Wall Street crash the only cause of the great depression in 1929?
there is no main cause, all causes are equal for without one cause then the crash wouldn't have happened. for example with out over production there would have been no crash at all and without a panic reaction, there wouldn't have been a crash at the end, it would have all corrected itself out over time.
What were the results of the 1929 stock market crash?
at the end of the stock marketday on thurs. oct,24 the market was at a selling panic attack. the profit flew down and that was the result of the Stock Market crash
Was the 1920s a time of poverty?
Not until the very end; the stock market crash happened in 1929, starting the Great Depression.
The good times of the 1920's came to an end with the stock market crash in what year?
October 29 1929
What was the wall street crash in 1929?
The Wall Street crash of 1929 was the beginning of the Great Depression and the end of the Roaring Twenties. It was the period from October 29 to November 13 when the stock market prices crashed, leaving many people destitute.
Why did the depression begin and end?
Begin: Stock Market Crash End: WW2
What event ended the economic prosperity of the 1920?
The stock market crash of 1929 put an end to the prosperity of the 1920s in the United States.
The term for the decisive drop in the stock market at the end of October 1929?
black Tuesday
When did the Flappers end?
It took the stock market crash of 1929 to bring the era of the flapper to a sudden endRead more: http://www.fashionencyclopedia.com/fashion_costume_culture/Modern-World-1919-1929/Flappers.html#ixzz0WgNlaA1W
What brought on the stock market crash 1929?
In my history class since I was little, I have been taught that the stock market crash in 1929 was due to mishandeling of funds and citizens depositing their money in banks and then everyone withdrawing at the same time.
Who came into presidency as the country fell into depression?
Technically, it would be Herbert Hoover, who was elected President in 1928 and was inaugurated in 1929. The stock market had its wild swings through the fall of 1929, culminating in a drastic crash in September, a recovery in early October, then a crash with no end at the end of October 1929. Franklin D. Roosevelt was elected President in 1932, arguably one of the worst years of the Depression, but still a Depression that already happened.
What are some major events that happened in the 1920s?
On October 24th, 1929 the stock market began going down. After the first hour the prices had gone down at an amazing speed! Prices kept dropping and on October 29th, 1929 more than 16 million shares were sold, but by the end of the day ended up below their previous value and some became totally worthless. Most people became homeless all because of the stock market crash. The stock AT&T had gone from $304 to $197. America had celebrates for 8 years but everything was wasted in just a few weeks because of the stock market crash.
When did the Great Depression start?
The Great Depression started in about 1929, official start date of it considered as Black Tuesday on October 29, 1929. NBER says the recession started in August 1929. Many attribute the start to the stock market crash of October 1929, aka Black Friday, however that is not the case. The stock market rebounded by April 1930. Black Friday was just a symptom of a larger problem, but not the actual cause of the GD.
