I don't get the whole thing about the 1929 stock market crash?

Question

I have read tons of articles about it but i still don't understand what it was all about. Can someone explain it plz.

Answer 1

Basically, as I was told, investors during that time period leading up to the 1920s, rich people were allowed to buy stocks on credit with only 10% down. When the economy starting slowing, investors starting selling, because the first to be selling will save their own a$$ first at the expense of later sellers, who will lose more. When word got about that people were selling, everyone began to sell, fearing a shortage of cash at banks. Banks hold only a reserve amount of all deposits, and the rest they loan out to their customers. When someone buys 1000 shares of say, Exxon, with 10% down at $100 a share, you can figure that if it loses 50% of its value overnight, you've just lost $50,000 on paper. Your lender finds out and calls in his $10,000 debt from you, and you can't make up the difference of what you paid and what you owe him. If this happens occasionally, the problem won't multiply throughout the economy very fast, but it happened so often in the 1929 stock market crash that the Great Depression lasted until about 1939, and the beginnings of WW2. It took about 13 years for the US economy to recover.

In 1929, many people committed suicide over way more vast losses than I have given here as an example.

Answer 2

Basically, in the 1920s lots of people borrowed money to buy stock. In 1929, the market went down a lot one day, and the banks demanded that people pay back these loans. The only way the people could pay them back was to sell more stock, which made the market go down more and more.
Because the market went down so much, many people lost their life savings and couldn't afford their mortgage payments, and were forced out of their homes. Others lost their businesses. Unemployment was very high, since there were few companies with a need to hire. This continued all during the 1930s, called The Great Depression. We didn't get out of the Great Depression until World War II, when the army and navy spent so much money that the economy recovered and people had jobs again.

Answer 3

As someone already pointed out, the market prior to the 1929 crash was a bubble propped up by runaway spending and people investing in worthless stocks in the mistaken belief that their value would somehow continue to increase.

The Great Depression was made much worse because it coincided with the Dust Bowl, a severe and prolonged drought that caused many farmers to lose their homes and land. When those people were forced off their land, they increased the number of unemployed.

Answer 4

At the end of World War I, President Woodrow Wilson pushed for the US to join the League of Nations and to sign the Treaty of Paris. He had to deal with a Republican Congress. (He was a Democrat.) They refused because it did not serve their isolationalist interests. Their arrogance was based on the thought that the USA was "the World Super Power" much like today.

They cut off through embargos, Germany and the democratically elected Weimar Republic, and caused Germany to plunge into a depression.

Isolationism and greed from 1918 until 1929 caused the Great Depression. All of this was done under Republican Congresses and administrations.

In 1929, under Herbert Hoover, it finally crashed.

Answer 5

That was the first attack on the World Trade Center they did not need bombs then or airplanes to crash our market?
The rich mongrols with conspiracies based here and Europe plotted and planned to do a take over then and they did ruin and kill many or our good people. It is all about who gets it all in this capitalistic society. Go to www.history.com look up the Rockafellers? the Rothchilds? etc., see how they all scooped up the gravy. That was a politically corrupt inside out theory of our government then and now they just push the numbers to fool you we are broke now and they are lying to you. America owes her panties to Europe right now and the oil industries as well. Just because we are putting the foreigners in our homes does not mean more American born people are buying them? Check out the roster of Mexican immigrants? And why?Oh yes after the depression the well plotted out war of the New World Order followed with the Hitler regime and we were lucky that the plans of the Roosevelt's, and the Rothchild's and the Rockafellers did not work, they actually wanted to enslave us and make this another dictator country as well. Only the rich rule us and that is that.

Answer 6

Unlike today there were no laws. These days if trading drops below a certain level trading is halted. That and all bank deposits under a certain amt are not insured via the FDIC that thing you see on all banks. Basically trading that day dropped like a rock. Money was drained from banks like a dam bursting. There was nothing to stop the freefall. Now there are tons of laws. I have seen trading stop 3 times due to that low trading thing on the US stock market.

No money no investing, no investing no jobs. It was bad.

Answer 7

It happened and nobody has ever come up with a satisfactory explanation why. There is an equally mysterious thing in our day: how to eat healthy. There are plenty of articles and books, but no consensus. One will say eat bananas and the other will say they're poisonous. Take your pick.