The 1929 Stock Market Crash has shaped generations, but with it fading fast from memory, how much do you really know about it? Take a look at these interesting facts about the 1929 Stock Market Crash to help you steer clear of any future loss…
- The 4-day collapse began on October 24th 1929 and would lead to a worldwide depression lasting 10 years.
- The Dow Jones lost an incredible 25% which amounted to $30 billion at the time.
- U.S. Economic growth was decimated and the size of the economy wouldn’t recover for another 25 years.
- Tales of bankers leaping to their death when they saw the results of the markets are now regarded as a myth.
- The ticker tapes were so far behind that analysts had beds brought into their offices and worked around the clock in shifts to try and catch up.
- In today’s money the losses amount to more than $400 billion in just 4 days.
- During the first day of the crash — Black Thursday — the number of trades tripled compared to what it would have typically been.
- Since 1922 the stock market had gone up by at least 20% a year, every year.
- Buying on margin allowed investors to put down as little as 10% and buy shares. This led to extreme leverage when the market moved in the other direction.
- Banks were using depositor’s savings to buy stocks without their knowledge.
- With this underhand behaviour combined with the fact that banks only had to honour 10% of all money deposited with them, people were wiped out overnight and left destitute.
- The key to the bubble bursting was a loss of confidence that it could continue to grow at the same rate.
- On Black Tuesday the market panicked to such an extent that trades quadrupled in an attempt to save the stock prices from falling further.
- The Great Depression hit America hardest and is thought to have stemmed from isolationist principles that saw the U.S. reduce foreign trade after the crash.
- The stock market would go on to lose 90% of its pre-crash value by 1933 causing the average family income to drop by over 40%.
Do you know any interesting facts about the 1929 Stock Market Crash that we’ve missed? Share them here in the comments section below!
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