Stock Market Crash

By: Amanda Gayle Kennett!


In the 1920's of course many things has happened and the Stock Market Crash was one of the biggest events. The 1920's was known for unbelievable prosperity. The Stock Market was getting very high and seemed to have the formula for limitless prosperity and the formula that generated the profit also caused Black Tuesday. Investments were based on the unstable Margin buying which is a way of spending more money than one actually has on hand, and this is done by putting a smaller thing down as collateral, and then borrowing money from the broker to make up the rest of the money from the stocks. When stocks failed and investors needed the money it was all pemanently lost.

The stock market crash was also part of the cause of the beginning of the Great Deppression. The Great Depression began when the stock market crash began on Black Thursday on October, 24, 1929. When 16 million shares of stocks were quickly sold by investors who had lost faith in the American Economy. Close to 25% of the total work force 12,830,000 people were unemployed. The Stock market Crash was known as the worst economic crash in american history. This horrible event made farming even hard. Many farmers lost there land, homes, and also went hungrey. Families split up or migrated from there homes in search of work. Industry was badly ruined from The Great Deppression. Factories closed, mills and mines were abandoned. Fortunes were lost, pretty much american business and labor was seriously in trouble.

People say that The Great Deppression was caused by the Stock Market Crash but honestly it wasnt. The stock market crash was only a little part of it. However a Stock Market Crash could cause people to increase their price range, which could lead them to hoard money. In the August 1990 issue of The Quarterly Journal of Economics, Christine D. Romer writes that "the negative effect of stock market variability is more than strong enough to account for the entire decline in real consumer spending on durables that occfurred in late 1929 and 1930.
But also the Stock Market Crash wasn't just caused from one little factor. It was from a combination of many factors that were occuring at the same time. Which led to what is now known as the countries worst financial calamity.

There is a song that is based on The Stock Market Crash and it was by Bruce Springsteen.
"Well the doctor comes 'round here with his face all bright
And he says"in a little while you'll be alright"
All he gives is a humbug pull, a dose of dope and a great big bill
Tell me how can a poor man stand such times and live

"Me and my old school pals had some mighty high times down here
And what happened to you poor black folks, well it just aint fair"
He took a look around, gave a little pep talk, said "I'm with you" then he took a little walk
Tell me how can a poor man stand such times and live

There's bodies floatin' on Canal and the levees gone to hell
Martha, get me my sixteen gauge and some dry shells
Them who's got got out of town and them who ain't got left to drown
Tell me how can a poor man stand such times and live

Go ahead!

Got family scattered from Texas all the way to Baltimore
Yeah and i ain't got no home in this world no more
Gonna be a judgment that's a fact, a righteous train rollin' down this track
Tell me how can a poor man stand such times and live
Tell me how can a poor man stand such times and live
Tell me how can a poor man stand such times and live."

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