What are the major consequences of Wall Street Crash 1929?
The last century witnessed a tragedy in global stock markets, initiated by the notorious Wall Street Crash 1929. This caused a big slump in the market values of shares across the world. This triggered off the Great Depression, and many other consequences. According to Frederick Lewis Allen’s Only Yesterday (1931), “The rich man's chauffeur drove with his ears laid back to catch the news of an impending move in Bethlehem Steel; he held 50 shares himself. The window-cleaner at the banker's office paused to watch the ticker, for he was thinking of converting his savings into a few shares of Simmons ... a broker's valet who made nearly a quarter of a million on the market, a trained …show more content…
During mid 1920s, which is called The Roaring Twenties, many American people were enthusiastic in stock market speculation. However, due to the Wall Street Crash which started in September 1929, many investors lost their life saving and they owed a lot of money to banks. Many companies and banks went bankrupt. Many people could not afford their living since they lost their savings and also their …show more content…
Due to such great shock in the US stock markets, many internationals banks and companies which invested heavily in US stock markets lost hefty amount of capital, which dealt a serious blow to financial markets around the world. Therefore, investors all over the world lost a lot of capital and could not sustain the previous investment, and global economies and financial markets were in a seriously contracting vicious cycles, evidenced by contraction of credit, business closures, acutely high employment and plummeting of money supply. There was a worldwide run on US gold deposits and Federal Reserve Board had to hike interest rates to curb the excessive capital outflow. However, they could not resuscitate the global financial systems and more than 4000 banks failed. According to Leonard’s Three Years Down (1944) and Allen, Frederick, Lewis’, Since Yesterday: the 30's in America (1972), “"That Saturday and Sunday Wall Street hummed with week-day activity. The great buildings were ablaze with lights all night as sleepy clerks fought desperately to get the accounts in shape for the Monday opening. Horrified brokers watched the selling orders accumulate. It wasn't a flood; it was a deluge. Everybody wanted to sell-the man with five shares and the man with ten thousand. Evidently the week-end cheer barrage had not hit its mark.” This shows that Wall Street Crash 1929 caused lots of panic in financial markets.
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The last century witnessed a tragedy in global stock markets, initiated by the notorious Wall Street Crash 1929. This caused a big slump in the market values of shares across the world. This triggered off the Great Depression, and many other consequences. According to Frederick Lewis Allen’s Only Yesterday (1931), “The rich man's chauffeur drove with his ears laid back to catch the news of an impending move in Bethlehem Steel; he held 50 shares himself. The window-cleaner at the banker's office paused to watch the ticker, for he was thinking of converting his savings into a few shares of Simmons ... a broker's valet who made nearly a quarter of a million on the market, a trained …show more content…
During mid 1920s, which is called The Roaring Twenties, many American people were enthusiastic in stock market speculation. However, due to the Wall Street Crash which started in September 1929, many investors lost their life saving and they owed a lot of money to banks. Many companies and banks went bankrupt. Many people could not afford their living since they lost their savings and also their …show more content…
Due to such great shock in the US stock markets, many internationals banks and companies which invested heavily in US stock markets lost hefty amount of capital, which dealt a serious blow to financial markets around the world. Therefore, investors all over the world lost a lot of capital and could not sustain the previous investment, and global economies and financial markets were in a seriously contracting vicious cycles, evidenced by contraction of credit, business closures, acutely high employment and plummeting of money supply. There was a worldwide run on US gold deposits and Federal Reserve Board had to hike interest rates to curb the excessive capital outflow. However, they could not resuscitate the global financial systems and more than 4000 banks failed. According to Leonard’s Three Years Down (1944) and Allen, Frederick, Lewis’, Since Yesterday: the 30's in America (1972), “"That Saturday and Sunday Wall Street hummed with week-day activity. The great buildings were ablaze with lights all night as sleepy clerks fought desperately to get the accounts in shape for the Monday opening. Horrified brokers watched the selling orders accumulate. It wasn't a flood; it was a deluge. Everybody wanted to sell-the man with five shares and the man with ten thousand. Evidently the week-end cheer barrage had not hit its mark.” This shows that Wall Street Crash 1929 caused lots of panic in financial markets.
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