Black Friday October 29 th 1929

The Stock Market Crash

The crash originally started on October 24th “Black Thursday.”

By October 29th banks started calling in loans when the market fell.

An estimated $30 billion in stock values will "disappear" by mid-November.

When the stock market crashed this marked the end of a six year prosperity for the American Society.

President Herbert Hoover makes the statement “Any lack of confidence in the economic future or the basic strength of the business in the United States is foolish.

In just three days, over $5 billion worth of market capitalization had been erased from stocks that were trading on the New York Stock Exchange

The number of people unemployed rose from 1.5 million to 3.2 million before the crash in 1929.

Hoover still remaining optimism claimed “All the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next 60 days.“

By the end of the 1929 stock market crash, a staggering $16 billion worth of market capitalization had been lost from NYSE stocks.

Since many banks had also invested large portions of their clients' savings in the stock market, these banks were forced to close when the stock market crashed

In fear people rushed to the banks to save their money causing most of the banks left to close.

Banks

Businesses started cutting back their workers' hours or wages. In turn, consumers began to curb their spending, refraining from purchasing such things as luxury goods.

Some businesses couldn't stay open even with these cuts and soon closed their doors, leaving all their workers unemployed.

Business and Industry

By the inauguration of Franklin D. Roosevelt as president in March 1933, the banking system of the United States had largely ceased to function.

Depositors had seen $140 billion disappear when their banks failed. Businesses could not get credit for inventory. Checks could not be used for payments because no one knew which checks were worthless and which were sound. 

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Explorepahistor.com 

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Citationswww.english.illinois.edu

http://www.pbs.org/wgbh/americanexperience/features/timeline/rails-timeline/

blog.timesunion.com www.ssa.gov www.uihealthcare.org 

www.empowernetwork.com http://history1900s.about.com/od/1930s/p/greatdepression.htm

www.dipity.com www.history.com  http://www.stock-market-crash.net/

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