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BLACK TUESDAY By Saechin. The phrase Black Tuesday refers to October 29, 1929, five days after the United States stock market crash of Black Thursday, when general panic set in and everyone with investments in the market tried to pull out of the market at once.
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The phrase Black Tuesday refers to October 29, 1929, five days after the United States stock market crash of Black Thursday, when general panic set in and everyone with investments in the market tried to pull out of the market at once.
On Tuesday October 29th, 1929, Wall Street witnessed a 13% decline in the Dow Jones, an episode that became known in financial mythology as “Black Tuesday.” It is generally recognized that Black Tuesday was the beginning of the Great Depression.
On that day, over 16 million shares of stock were sold and the market fell over 14 billion dollars. By comparison, the entire budget of the U.S. Government that year was three billion dollars. Brokers screamed as hysterical visitors were taken away by the police. In one day, the United States lost more capital than it had spent in all of World War I.
This week and its aftermath marked the start of the Great Depression in the United States. While Black Tuesday is often cited as the worst day in Stock Market history, in terms of percentage loss the honor goes to Black Monday, 1987.
In the 1920s, a large number of people invested in the stock market. At the time many bought on the margin, meaning these people borrowed money from loan companies in order to buy stocks. The reason for this was because the stocks in the early 1920s increased at a very high level. If someone had taken out their stocks at any time, they would have received a good amount of money for it, more then paid in the first place. Because they had borrowed the money, they were able to pay back the loans, making more money than they ever would have otherwise.
GGGGG • All across the country – and all around the world – people paid attention to the news closely. Some investors killed themselves. • Millions of people from all over the world who owned stocks waited helplessly as stock values crashed.
After the crash, the amount of goods and services produced by American companies plunged, and many people lost their jobs. People all over the country stood in lines to get bread or eat at free soup kitchens. .
