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Hasan Ismail's List: Stock Market Crash

  • Feb 21, 12

    In the mid to late 1920s, following World War I, the United States underwent drastic change in which the culture, mentality and economy were completely revolutionized. This period, known as the Roaring Twenties, resulted in a massive economic boom where people started to invest in stocks and make millions of dollars from doing so. While the economy was booming, the ratio of buyers to sellers became larger, with the amount of buyers going up. Once stock prices eventually began to go down, individual investors began to get rid of their stocks. Since buyers did not want to take the risk of holding these securities, trading stopped within the stock exchange. By 1929, the United States stock market crashed and had a powerful effect worldwide. Most countries were either affected politically, economically or both, thus resulting in unexpected changes throughout the world.

  • Feb 21, 12

    During the 1920s, following World War I, the United States went through an incredible change, in which its culture, economy, and mentality changed completely. Women became more outgoing, people became bold risk-takers, and Americans just wanted to celebrate. This period was known as the Roaring Twenties.

    "Stock Market Crash of 1929." Encyclopedia Britannica. Encyclopedia Britannica

    Online. Encyclopedia Britannica Inc., 2012. Web. 20 Feb. 2012.

  • Feb 21, 12

    In the 1920s, there were around 600,000 new investors that were speculators, or investors who did not intend to keep their shares for too long. They did not even have to pay full value for the shares. They were able to buy 'on margin', or only put down 10 percent of the cash needed to buy the shares and borrow the rest. Unfortunately, when the market crashed, the loans were not able to be paid back.

  • Feb 20, 12

    Used in background paragraph 

    www.britannica.com/...stock-market-crash-of-1929 stock market market crash

    • During the mid- to late 1920s, the stock market in the United States underwent rapid expansion. It continued for the first six months following President Herbert Hoover’s inauguration in January 1929. The prices of stocks soared to fantastic heights in the great “Hoover bull market,” and the public, from banking and industrial magnates to chauffeurs and cooks, rushed to brokers to invest their surplus or their savings in securities, which they could sell at a profit.

      • Everybody was investing, even chauffeurs and cooks. Bull Market means that they market is high. 

    • The first day of real panic, October 24, is known as Black Thursday; on that day a record 12.9 million shares were traded as investors rushed to salvage their losses. Still, the Dow average closed down only six points after a number of major banks and investment companies bought up great blocks of stock in a successful effort to stem the panic that day. Their attempts, however, ultimately failed to shore up the market.

      • October 24th was actually the first day of panic, or the first day of the crash. However, the 29th was when the stock market hit the bottom.

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  • Feb 21, 12

    The market faced several problems and fell because the owners of the stocks wanted money from the banks, however, the banks did not have the money because of the loans that were given to the borrowers. The banks then asked for money from the borrowers, but the borrowers were broke because of all the money that was lost in the stock market. Therefore, the rush to sell stocks caused the economy to plummet.

  • Feb 20, 12

    www.pbs.org/...estockmktcrash.htm stock market market crash

    • Roosevelt closed all the banks in the United States for three days - a "bank holiday."

      • Bank holiday was supposed to give a break to the economic disaster. 

    • To prevent similar disasters, the federal government set up the Federal Deposit Insurance Corporation, which eliminated the rationale for bank "runs" - to get one's money before the bank "runs out." Backed by the FDIC, the bank could fail and go out of business, but then the government would reimburse depositors.

      • The FDIC or Federal Deposit Insurance Corporation backed up depositors money all the way up to 250,000 dollars.

    1 more annotation...

  • Feb 21, 12

    In 1933, President Roosevelt was doing his best in trying to repair the American economy. He issued a 'bank holiday' for two days, in which all banks were closed in order to prevent depositors from withdrawing all their money. Three days later, President Roosevelt released his first "fireside chat," in which he directly spoke to the people of the United States, reassuring them that the banks were once again secure for deposits. Just by his encouraging words, deposits exceeded withdrawals the next day.

    Glassman, Bruce. "Americans Get A "New Deal"" The Crash of '29 and the New Deal.

    Morristown, NJ: Silver Burdett, 1986. 43-44. Print.

  • Feb 22, 12

    The stock market crash of 1929 affected not only the United States, but also countries worldwide. It caused several countries to fall apart and others to find new leaders, in which the country would be changed entirely. Unfortunately however, the outcome of the stock market crash eventually led to dangerous leaders rising to power and countries falling apart. The stock market crash changed the course of history.

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