Stock Market Failure

718 Words3 Pages
Stock Market Failure- Tyler
The day the stock markets failed or Black Tuesday, October 29, 1929 In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.
Coming out of World War I, America was high-rolling. With new products, the automobile, washing machine, and the vacuum and many more. There was more partying (for a good example The Great Gaspe). Instead of using traditional methods of payment, more and more Americans were using credit to pay for things
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The decade started with dry years in 1930 and 1931 especially in the East. Then, 1934 recorded extreme drought over almost 80 percent of the United States. Extreme drought conditions returned in 1936, 1939 and 1940. The drought made the Depression worse, especially in the Great Plains. The Plains were the hit hardest. With no rain, farmers couldn't grow any crops; no crops meant that the wind blew bare soil high in the air creating dust storms. School was canceled because of dust storms. Farmers in trouble because of the bad economy were forced to give up and move out of the plains looking for work. The New Deal worked frantically to provide relief and to get farmers to conserve their soil. Bank Failure- Andrew
As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash during the first 10 months of 1930, 744 banks failed. All In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933
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National money was converted into gold at the fixed price. In this time, there was unprecedented economic growth with relatively free trade in goods, labor, and capital. A good time for trade if you had money but no one did so it was a kind of lose win, thing more so lose than win though. How did it work, the gold standard was a domestic standard regulating the quantity and growth rate. Because new production of gold would add only a small fraction to the accumulated stock, gold into non-gold money, the gold standard ensured that the money supply. But periodic surges in the world’s gold stock, such as the gold discoveries in Australia and California around 1850, caused price levels to be very unstable in the short
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