Wall Street Crash of 1929
It happened on the New York Stock Exchange on Tuesday October 29, 1929, now known as Black Tuesday. The crash started the Great Depression and stock prices did not reach the same level until late 1954.
The crash signalled the beginning of the 10-year Great Depression that affected all Western industrialized countries. It did not end in the United States until the start of American mobilization for World War II at the end of 1941. 15 million people had unemployment coming to them after the banks crashed.
- "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.
Stock-exchange speculation led hundreds of thousands of Americans to invest heavily in the stock market. Many were borrowing money to buy more stocks.
- "At the turn of the 20th century stock market speculation was restricted to professionals, but the 1920s saw millions of 'ordinary Americans' investing in the New York Stock Exchange. By August 1929, brokers had lent small investors more than two-thirds of the face value of the stocks they were buying on margin – more than $8.5bn was out on loan".
The amount of money out on loan was more than the entire amount of currency circulating in the U.S. at the time.
- Bone, James. "The beginner's guide to stock markets". The Times (London). Archived from the original on May 25, 2010. http://web.archive.org/web/20100525124235/http://www.timesonline.co.uk/tol/money/reader_guides/article6250577.ece. Retrieved January 29, 2012. "The most savage bear market of all time was the Wall Street Crash of 1929–1932, in which share prices fell by 89 per cent."
- "Stock market crash of 1929". Encyclopædia Britannica. http://www.britannica.com/EBchecked/topic/566754/stock-market-crash-of-1929. Retrieved January 29, 2012.
- Salsman, Richard M. 2004. The cause and consequences of the Great Depression, part 1: What made the roaring '20s roar. The Intellectual Activist, June 2004 p16. ISSN 0730-2355
- Lambert, Richard (July 19, 2008). "Crashes, Bangs & Wallops". Financial Times. http://www.ft.com/cms/s/0/7173bb6a-552a-11dd-ae9c-000077b07658.html. Retrieved September 30, 2008.
- Facing the facts: an economic diagnosis. http://books.google.com/books?id=v3-1r1gHcb4C&pg=PA14&lpg=PA14&dq=volume+of+dollars+in+circulation+in+1929#v=onepage&q=volume%20of%20dollars%20in%20circulation%20in%201929&f=false. Retrieved 2008-09-30.