The Crash of´29

The Crash of 1929 was one of the most devastating stock market crashes in American history. It consists of Black Thursday, the initial crash and Black Tuesday, the crash that caused general panic five days later.

While no consensus exits about its exact causes, it argues that one of the principle causes was the attempt by politicians and the media to stop markets speculators. The probable second reason was the great expansion of investment trusts and public utility holding companies. The convential view was that stock prices were too high.

The Wall Street Crash had a tremendous impact on the whole population, because the dramatical prices fall made it very difficult for entrepreneurs to find the necessary money to go on running companies. This problem made more than 100000 american companies close and consequently a lot of workers became unemployed and at that moment there was no national system of unemployment benefit. The final consequense was that the american purchase power fell dramatically.

This crash helped bring on the drepression of the thirties which was a terrible period of crisis in the whole world. The depression also helped to extend the period of low stock prices, because of that it took to the Wall Street bourse 22 years to reach the same level it achieved in 1929.