History Wall street crash

What was the Wall Street Crash of 1929?

The Wall Street Crash of 1929, also known as Black Tuesday, was a major stock market crash that occurred in late October 1929, marking the beginning of the Great Depression.

When did the Wall Street Crash occur?

The Wall Street Crash began in late October 1929, with the most notable day being Black Tuesday on October 29.

What were the causes of the Wall Street Crash?

Causes included over-speculation in the stock market, excessive use of margin buying, and economic instability.

What is margin buying?

Margin buying is the practice of borrowing money from a broker to purchase stock, which can amplify both gains and losses.

What was the impact of the Wall Street Crash on banks?

Many banks failed as depositors rushed to withdraw their money, leading to widespread bank insolvencies.

How did the Wall Street Crash affect unemployment?

Unemployment rose dramatically as businesses failed or reduced their workforce due to the economic downturn.

What was the Great Depression?

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, largely triggered by the Wall Street Crash.

What was the role of speculation in the crash?

Speculation contributed to the crash as investors bought stocks at inflated prices with the hope of selling them at even higher prices.

What government actions were taken after the crash?

The U.S. government implemented reforms and regulations, such as the Securities Exchange Act of 1934, to stabilize the financial system.

Who was Herbert Hoover?

Herbert Hoover was the 31st President of the United States, serving during the early years of the Great Depression.

What is Black Tuesday?

Black Tuesday refers to October 29, 1929, the day the stock market crashed significantly, leading to massive financial losses.

How did consumer confidence change after the crash?

Consumer confidence plummeted after the crash, leading to decreased spending and investment.

What were 'bank runs'?

Bank runs occurred when large numbers of customers withdrew their deposits simultaneously, fearing bank collapse.

What was the Dust Bowl's relation to the Great Depression?

The Dust Bowl exacerbated the economic hardships of the Great Depression by devastating agriculture in the 1930s.

What is the Securities and Exchange Commission (SEC)?

The SEC was established in 1934 to oversee securities transactions, aiming to protect investors and maintain market integrity.

How did the crash affect global economies?

The crash contributed to worldwide economic downturns, causing recessions in many countries.

What was the effect of the Wall Street Crash on stock prices?

Stock prices plummeted rapidly, with the market losing nearly 90% of its value from its peak by 1932.

What is economic speculation?

Economic speculation involves investing in financial markets with the hope of making a profit from price fluctuations.

How did the crash change U.S. monetary policy?

It led to a shift towards more active governmental intervention in the economy and the banking system.

Who were the 'tape readers'?

'Tape readers' were investors who relied on reading ticker tape to speculate on stock movements, contributing to market volatility.

What was the Federal Reserve's role during the crash?

The Federal Reserve's inaction in lowering interest rates during the early stages of economic downturn was criticized for worsening the crash.

What is the Glass-Steagall Act?

The Glass-Steagall Act of 1933 separated commercial banking from investment banking, aimed at reducing the risk of future crashes.

What were the psychological effects of the crash?

The crash led to widespread fear, loss of savings, and a long-term distrust in financial systems among the public.

What lesson did the Wall Street Crash teach about market regulation?

It highlighted the need for regulations to prevent excessive speculation and protect investors.

What was the long-term effect of the Great Depression on U.S. policies?

It resulted in the establishment of social safety nets and stronger regulations on the financial industry.

How has the Wall Street Crash been remembered in history?

It is often cited as a crucial event that shaped modern economic policy and regulation.