Factors Leading to 1929 Crash

Black Thursday

Black Thursday

24 October 1929: Start of Wall Street Crash

Consumer Goods

End-use products like vacuum cleaners and fridges

Great Depression

Prolonged global economic downturn post-1929 Crash

On the Margin

Borrowing money to purchase shares

Shares

Financial stakes in a company

Stock Market

Exchange for buying and selling shares

Overproduction in Agriculture

Excessive farming output due to improved techniques

Overproduction in Industry

Excess consumer goods unsold in the USA

Buying on Credit

Purchasing goods on credit, leading to debts

Commerce

Attempt to sell surplus goods to Europe post-1920s

Property Prices

Rise and fall of house values, causing negative equity

Too Many Small Banks

Unregulated banks unable to handle financial stress

Over Speculation

Buying shares on borrowed money for profit

Loss of Confidence

Resulting in sudden stock market crash

Value of Stock Market in 1925

$27 billion

Value of Stock Market in 1929

$87 billion

Black Thursday Shares Sold

12.8 million shares sold on 24th Oct 1929

Black Tuesday Shares Sold

16 million shares sold at low prices on 29th Oct 1929

Warning Signs in September 1929

Investors started selling shares, indicating economic slowdown

Long-Term Causes of 1929 Crash

Factors like overproduction, falling demand, and credit debts

Short-Term Causes of 1929 Crash

Over-speculation, loss of confidence, and sudden price fall

Impact of 1929 Crash on American Society

Mass unemployment, bank closures, and economic despair