The night of Monday October 21, 1929 numerous Dutch and German calls came in over night to New York to sell the next morning. These sales were made in anticipation of the stock market to drop as it had been the last week. As the word spread of the sales of the larger stock companies, more companies joined. On Tuesday morning corporat

It is easy to look back at the Stock Market Crash of 1929 and count all the bad things that happened. The big crash caused the Great Depression and made the lives of millions of United States citizens miserable. People lost money and more importantly lost jobs. It's harder to realize what good things happened, what was learned. There is no boom in economy without bust. Without the lows of the stock market there wouldn't be the highs. The American economy learned from its mistakes and has experience in dealing with depression and economic lows. The Federal Reserve was created and made more reliable. Better and more accurate stock speculations were developed to ensure there was no fraud. Most importantly the American Government and people learned that there is never a sure thing.

Public statements made by officials may have been a part of the crash of 1929. Newly elected president of the United States, Herbert Hoover, publicly stated that the stocks were overvalued and that speculation hurt the economy. To some stock holders this statement might make them weary of the Stock exchange, but to most stock holders they became more confident. Hoover's statement told the public the lengths he was willing to go to control the stock market. These kinds of statements from high officials and the media coaxed investors to remain in the stock market although it was know that the prices were high and the stocks were overvalued.

Four thousand banks failed because depositors fought to reach the teller windows before their money disappeared forever. Congress passed the Glass-Steagall Act four years later in 1933. This act banned any connection between commercial banks and investment banking, to guarantee that the banks would not be faced with a similar situation.

Fraud and illegal activity was suspected at first to be a big part of the market crash. However there is no evidence that shows insider trading or illegal manipulation.

Buying stock on credit (margin buying) was a big problem for the New York Stock Exchange. Running America's economy with money that was not actually there was bound to fail. But this was not the main reason for the Stock Market Crash of 1929. In proportion, margin buying was only about 5% of the relative value of the stock market.(1929 2)

Stock holders saw the dramatic decrease in stock values began to sell. This lowered the stocks even more and created a snowball effect. As more stock holders sold their stocks to save what money that had, the stocks values dropped which caused more customers to sel

Some topics in this essay:
Dow Jones, Market Crash, United Government's, Standard Gas, Stock Exchange, Reserve Board, Herbert Hoover, Dutch German, Nazi Party, stock market, Money PolicyCoben, market crash, stock market crash, stock holders, dow jones, crash 1929, stock exchange, market crash 1929, margin buying, york stock exchange, federal reserve, prices stocks, york stock, 1929 stock market,