It has been argued that the stock market crash of 1929 was the worst financial crises that the United States has ever seen. Prior to the crash during the 1920s society as a whole was experiencing some of the most prosperous times that had ever been seen throughout the history of the United States. The era definitely earned its nickname the Roaring Twenties. Throughout these well-to-do times, there was a wealth of money, optimism, and excitement. However, all good things must come to an end. It was on an eerie day Oct 24, 1929, in New York City the epicenter of the crash, where it all came crashing down. There was a feeling of suspicion that was clamoring about and panic was in the air. During this time, there were very few explanations as to
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One force, in particular, was created by the own United States government. During World War I it was hard to tell what the United States government was shelling out faster bullets or Liberty Bonds. The United States with the help of influential figures such as Thomas W. Lamont a senior partner at J.P. Morgan and a member of the Liberty Loan Committee were encouraging citizens to buy the Liberty Bonds as fast as they could be printed (Blumenthal). While this was exactly what America needed to do at the time these saving practices carried over even after the war was over. The American people began to look for other opportunities to invest their money and the brokers of the New York Stock Exchange were happy to accommodate them by showing them exactly where they could invest it. The loose credit policies of this time mixed with the increased interest in the stock market were the perfect ingredients to create a deadly cocktail for the market. The markets rose faster than anyone could have imagined, “it had taken more than twenty years, from 1906 to 1927, for this key stock-market indicator [Dow Jones Industrial Average] to climb to 200 from 100. But in just over a year, the average jumped from 200 to 300.” (Blumenthal). The market continued to grow which led rich and poor investors alike to continue to pump massive sums of money into it, this was great news for the companies that saw their market caps soar to new highs. However, this was the tipping point and the market came crashing down shortly after this artificial boom when the market had reached its new
One force, in particular, was created by the own United States government. During World War I it was hard to tell what the United States government was shelling out faster bullets or Liberty Bonds. The United States with the help of influential figures such as Thomas W. Lamont a senior partner at J.P. Morgan and a member of the Liberty Loan Committee were encouraging citizens to buy the Liberty Bonds as fast as they could be printed (Blumenthal). While this was exactly what America needed to do at the time these saving practices carried over even after the war was over. The American people began to look for other opportunities to invest their money and the brokers of the New York Stock Exchange were happy to accommodate them by showing them exactly where they could invest it. The loose credit policies of this time mixed with the increased interest in the stock market were the perfect ingredients to create a deadly cocktail for the market. The markets rose faster than anyone could have imagined, “it had taken more than twenty years, from 1906 to 1927, for this key stock-market indicator [Dow Jones Industrial Average] to climb to 200 from 100. But in just over a year, the average jumped from 200 to 300.” (Blumenthal). The market continued to grow which led rich and poor investors alike to continue to pump massive sums of money into it, this was great news for the companies that saw their market caps soar to new highs. However, this was the tipping point and the market came crashing down shortly after this artificial boom when the market had reached its new