ipl-logo

Causes Of 1929 Stock Market Crash: A Speculative Orgy Or A New Era?

1033 Words5 Pages

Sharon Tao Mr. Caldwell Economics 28 October 2015 The Great Crash 1929 Galbraith, John Kenneth. The Great Crash, 1929. Boston: Houghton Mifflin, 1955. Print. In his book, The Great Crash 1929, John Kenneth Galbraith examines the stock market crash. He brought up ideas of buying on margins, bad banking structures and income inequality were considered as contributing causes of the crash. However, Galbraith argues that the speculations in the stock market were the main reasons, due to the wrong belief of gaining wealth through investing in current trends could make them rich without work, this belief strongly damaged the economy. Galbraith used a simple storytelling technique in a chronological order from people starting …show more content…

written by Harold Bierman Jr. catches my attention. Because Bierman refutes the idea that wild speculation has driven up stock market prices and eventually led to market crash. This idea is contrary to Galbraith 's argument in his book, in his book he stated that the main cause of this stock market crash were due to the speculations of the investors that later on drove the price up and led greedy investors buying stocks on margin and harms the market. These two authors wrote on book on the topic of The Great Crash of 1929, however they both proposed a different argument for the causes of the …show more content…

I would recommend this book to people if they are looking for a well diverse knowledge of the Great Crash. Galbraith uses a simple and humorous technique to catch a reader 's eye. I personally adored how he can categorize the contributing factors for the crash and also the results which I think give me a clear idea of the whole event.He was able to capture the gist of the events and conclude them into rich informations for reader which I really appreciate. The only part I think can be improved on is that I was hoping a more detailed information on the economic point of view and not mainly on analysis. He could give out more dates of numeric record and the economic point of view like inflations and trading records. Overall Galbraith delivered an amazing book for us readers to enjoy and acknowledge his creative insights as a former experienced economist. The stories were compelling that I felt like I was reading a novel. Even though this book was published in the 1950s but it still got so much to offer. This book definitely increased my knowledge of the business during the early 20th

Show More
Related

  • Roaring Twenties Dbq

    742 Words  | 3 Pages

    After the end of World War I the Untied States entered a period of the Roaring Twenties. During the Roaring Twenties, production was high, spending was high, and the Stock market increased by over four hundred percent. By 1929, stocks were overpriced, factories were overproducing goods, and bad credit all climaxed with the collapse of the American economy. By the time the United States realized what was wrong the economy was plunging with no end in sight. In an attempt to prevent the collapse JP Morgan invested one hundred million dollars into the stock market to try and calm people and prevent selling.

    Read More

  • Great Depression Dbq

    222 Words  | 1 Pages

    Although the 1920’s were booming and prosperous, the United States soon entered a prolonged economic depression. In October of 1929, prices in the stock market began an uneven downward slide (Document 2). As investors decided that the previous boom in the stock market was over, they sold more stock, thus causing the declination to increase even further. Many citizens of the United States were greatly affected by this. Families who had invested in stock lost most, if not all, or their life savings.

    Read More

  • How Did Americans Grow During The Roaring Twenties Dbq

    1053 Words  | 5 Pages

    Leuchtenberg sad, “There was no single cause of the crash and ensuing depression,” [Doc2]. Many things as stated earlier contributed to the crash, such as overexpansion of credit, goods, industries and rising rates of unemployment. Many Americans saw the Stock Market as an easy way to create wealth by buying stocks cheap, usually at a margin, and selling for a higher price, hopeful to profit. Buying on margin was the act of paying some money on a stock, but loaning the rest from a bank who expected would be paid back when profit was made. Stocks became more expensive to the point where nobody wanted to buy them because of their extreme price.

    Read More

  • Driving While Black By Buehler: Summary

    1104 Words  | 5 Pages

    Buehler, J. W. (2017). Racial/ethnic disparities in the use of lethal force by US police, 2010-2014. American Journal of Public Health, 107 (2), 295-297. In Buehler’s article, he attempts to disprove a study that found no racial disparities in killings that law enforcement were responsible for.

    Read More

  • Why Was The American Economy Dbq

    710 Words  | 3 Pages

    The American economy suffered this vast plunge because speculation in the stock market, maldistribution of income, and overproduction of goods. For the duration of this time period, the purchasing of stocks became very popular,

    Read More

  • How Did The Stock Market Crash Of 1929 Dbq

    641 Words  | 3 Pages

    Based on the graph in Document 1, in 1928 the stock market reached its highest point. However, the glory didn’t last long. The stock market had a small crash in 1929 were prices began to drop. In October 24, 1929 ( Black Tuesday) was called “the beginning of the end”. In October 29, 1929 the stock market crashed and Investments lost billion of dollars.

    Read More

  • Possible Solutions To The Great Depression

    728 Words  | 3 Pages

    In 1929, America underwent an economic crisis. It was the longest and most severe depression of the industrialized western world. This was known as the Great Depression. The cause of this tragic event was partially caused by buying stock in credit. Banks handed out loans to people but when the stock market crashed, they couldn’t pay back the loan.

    Read More

  • What Caused The Great Depression Dbq Analysis

    1159 Words  | 5 Pages

    People trusted the “Buy now, Pay later” idea, so much so that they bought so much, and didn't have enough money to pay later. The distribution in income was only favorable for 40% of the entire population, and the citizens were gambling on their stock investments and thought nothing could go wrong. Imagine it is October 28, 1929, living a lavish lifestyle in your mansion, only to have the all of the dreams that came true crushed the very next

    Read More

  • Henry Paulson Great Depression Summary

    438 Words  | 2 Pages

    "Great depression?" they gasped. Consumer confidence plummeted, as did consumer spending (which accounts for a stunning 2/3 of US GDP). Corporations, in a mass panic, swiftly switched into a mode of panicked layoffs and cost cutting. The banks, already spooked, continued to tighten their lending not just to consumers but to corporations and other banks as well. And ditto for the rest of the world.

    Read More

  • Edwin Gay And The Great Depression

    653 Words  | 3 Pages

    “The trading floor of the New York Stock Exchange just after the crash of 1929”. In a single day, sixteen million shares were traded--a record--and thirty billion dollars vanished into thin air. (Cary Nelson). This ultimately led to the

    Read More

  • What Caused The Great Depression Dbq Essay

    726 Words  | 3 Pages

    In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

    Read More

  • Why Is Herbert Hoover A Bad President

    1069 Words  | 5 Pages

    The Stock market Crash was one of the causes of the Great Depression. One cause of the Stock Market Crash was the stock exchange. This led thousands of Americans to invest in stocks and lose money. Many Americans borrowed money from the bank to buy stocks. Most of the time, people who lost money were unable to pay the banks back their debt; which caused banks to fail.

    Read More

  • Great Depression Dbq

    692 Words  | 3 Pages

    For example, In Document five it states that in 1929, a collapse of the American Prosperity happen. Which means people was putting a lot of their money into securities hoping to the make the stocks rise. People began gambling which made a lot of them go into debt (Harry J. Carman and Harold C. Syrett, A History of the American People, 1952). Also a lot of people were speculating, meaning investors was putting money towards stocks hoping to gain, but risking a loss. By 1931, six million Americans could not find work.

    Read More

  • What Caused The Great Depression Research Paper

    780 Words  | 4 Pages

    There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves

    Read More

  • Thesis Statement: The Great Depression

    765 Words  | 4 Pages

    The Great DepressionTopic: the great depressionQuestion: How did the great depression affect americans?Thesis statement:The great depression affected americans because it destroyed their economy. Millions of families lost theirs savings as many banks collapsed in the 1930’s. The Great Depression was the worst economic drop of all times in the industrial world1. The Great Depression began because of a stock market crash in 1929 and came to end ten years later in 1939, around 15 million americans were unemployed and about half of the American banks failed. It was one of the darkest era in the United States.

    Read More

More about Causes Of 1929 Stock Market Crash: A Speculative Orgy Or A New Era?

Open Document