The share market is an unpredictable investment industry. If your luck favors you it can turn you millionaire. If the bears wreck havoc, it can bleed your purse dry. There have been some instances when the stock market in a country has witnessed a major catastrophic downfall that has made many investors biting the dust. The Wall Street Crash is ranked among one of the colossal losses suffered by the US stock market history. The 1929 crash of stock market followed a bullish run in the 1920s when More Americans started investing in the Stock market.
The 1929 crash of stock market was no single day event; it gave birth to three catchwords, Black Monday, Black Thursday and Black Tuesday. The first downfall came on October 24 which is called Black Thursday. But it was succeeded by Black Monday and Tuesday that thrashed the investors completely and rendered thousands penniless. In a way it rewrote the history of the nation. The slump prevailed for a month. There is a considerable amount of debate among the Historians and Economists regarding the long term effects of the crash on the countrys socio economic and political growth. Some of them call it the precursor of the Great Depression while others dismiss this theory. It led to substantial financial reform and new trade regulations.
The catastrophe or the 1929 crash of stock market took place when New York City was developing into a modern metropolis. The NYSE was the worlds biggest share mart. The Wall Street was known as the worlds major financial capital. It was a time of affluence and very few could anticipate the tragic fall the market will face. The myth of the bullish run was blown apart when share prices on the NYSE took a nosedive. The stock prices witnessed a record downwards fall in the following 1 month.
Investors panicked and a mass hysteria followed post the 1929 crash of stock market. The impact was so severe that the stock market could never attain its pre downfall status until 1954. A meeting was held to find a way to counter the free fall on 25th October by leading Wall Street bankers.
Richard Whitney, the then vice president of the NYSE adopted measures that resulted in a temporary relief following the 1929 crash of stock market. The newspapers fanned the mass fright by publishing provoking articles. The total loss exceeded the amount The US had spent in the First World War. It was a staggering $30 billion. Stock markets around the world resorted to preventive measures after witnessing this colossal downfall of NYSE.
Crash of 1929
