Stock market crash impacts
The stock ticker from the crash on display at the Museum of the City of New York.
The Causes and Effects of the Stock Market Crash | Our Everyday Life
Kennedy figured if the market was popular enough for a shoeshine boy to talk about it, the speculative bubble was too big and about to burst. Many folks thought the stock market could do nothing but go up -- and in the years between and , it did.
Because the stock market was experiencing the longest bull market in its history, everyone was getting into the act. Not many people noticed the signs the crash was coming -- or if they did, they ignored them. Almost two months before the crash, steel production was down, car sales were waning, fewer homes were being built and some banks had already failed.
If people commented negatively on the economy or the stock market, they were discredited. Folks, in large numbers, were buying stocks on margin -- borrowing money from banks to buy the stocks.
People were in for a rude awakening to discover that stocks can go down, and on Thursday, Oct. There was a mad rush to sell when the news hit the streets. Not only did investors who bought stocks on margin lose big, so did the banks that lent the money to them.
Banks could not raise enough money to pay their depositors, and hundreds of them failed.
The Impact of the Stock Market's Crash on Rural America
Many depositors lost everything. By , when Franklin D. Roosevelt was elected president, the banks were mostly nonfunctional. People were too poor to buy stock, and they had no confidence in the system anyway; many lost their savings when the banks failed.
The Great Depression set in and lasted more than 10 years. Unemployment reached 25 percent of the workforce. Measures were taken to help regain consumer confidence in the banking system: Laura Agadoni has been writing professionally since Her feature stories on area businesses, human interest and health and fitness appear in her local newspaper. She has also written and edited for a grassroots outreach effort and has been published in "Clean Eating" magazine and in "Dimensions" magazine, a CUNA Mutual publication.
Agadoni has a Bachelor of Arts in communications from California State University-Fullerton. People of our everyday life. The Causes and Effects of the Stock Market Crash by Laura Agadoni The stock ticker from the crash on display at the Museum of the City of New York. Related Articles 1 How Does the Stock Market Trading Floor Work? Ignoring the Signs Not many people noticed the signs the crash was coming -- or if they did, they ignored them.
The Great Depression People were too poor to buy stock, and they had no confidence in the system anyway; many lost their savings when the banks failed. When the Shoeshine Boys Talk Stocks It Was a Great Signal in Time: The Crash of New York Times: Looking Back at the Crash of '29 -- Then, as Now, a New Era PBS: Stock Market Crash PBS: About the Author Laura Agadoni has been writing professionally since Related Articles How Does the Stock Market Trading Floor Work?
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