The great crash
- In February 1928, stock prices began a steady rise that continued with only a few temporary lapses, for a year and half
- Between may 1928 and September 1929, the average price of stocks increased over 40 percent
- The stocks of the major industrials doubled in value in that same period
- Trading mushroomed form 2 or 3 million shares a day to over 5 million and at times to as many as 10 or 12 million
- There was, in short, a widespread speculative fever that grew steadily more intense, particularly once brokerage firms began encouraging the mania by recklessly offering easy credit to hose buying stocks
- In the autumn of 1929, the great bull market began to fall apart
- On October 21 and again on October 23, there were alarming declines in stock prices, in both cases followed by temporary recoveries
- bur on October 29, 'Black Tuesday" all efforts to save the market failed
- Sixteen million shares of stock were traded; the industrial index dropped 43 points, stock sin many companies became virtually worthless
- In the months that followed, the market continued to decline
- It remained deeply depressed for more than four years and did not fully recover for over a decade
- Many people believed that the stock market crash was the beginning and even the cause, of the great depression. But although October 1929 might have been the first visible sign of the crisis, the depression had earlier beginning s and more important causes.