The Stock Market Crashes1929

Video Recap

http://www.youtube.com/watch?v=ccNilnpvbJg&feature=related

The Crash

• When: early September 1929– What: stock prices peaked and then fell,

confidence wavers, investors sell stocks

• When: October 24, 1929– What: “Black Thursday” market plunged, panicked

investors sold shares, bankers put more money into the market

The Crash

• When: October 28, 1929– What: “Black Monday” market falls 22.6%, highest

one-day decline in history • When: October 29, 1929– What: “Black Tuesday” shareholders frantically

sell, prices plunged, record number of shares sold, many instantly in debt, bubble had burst

Financial Collapse• Crash signaled beginning of the Great

Depression (1929-1940)• Bank and Business Failures– Run on banks, banks didn’t have the money, bank

closures, people without savings – Businesses go bankrupt – Unemployment 3% in 1929 to 25% in 1933

• Worldwide Shock Waves– Europe still recovering from WWI– Imports and Exports decrease

Causes of Great Depression

• Policies that cut down the foreign market for American goods

• Farming crisis• Easy credit • Unequal distribution of income • All led to…– Falling demand for consumer goods – Low interests rates = more debt

Time to Write!

• Write two-three, thoughtful paragraphs, using complete sentences, answering the following...– What were the causes of the stock market crash of

1929 and the Great Depression that resulted from the crash?