By Webteam - 24th October 2018 6:04am
Wall Street Crash — The 24th of October 1929
Such was the unrealistic peak in share prices reached in 1929, and the drastic crash from that point, that it took a quarter of a century before share prices on Wall Street returned to that level.
Black Thursday was not the start of the financial plunge, which over a few weeks had seen a rapid fall then a brief and partial recovery. But on October 24 1929 there was a massive sell-off, halted only temporarily by major co-ordinated buying of stocks by institutions and magnates.
Consideration of some of the factors involved in the crash and the Great Depression after it makes fascinating reading, and perhaps causes some reflection on recent events: a stock market bubble had occurred over the preceding five or six years, with Price/Earnings ratios eventually topping an unrealistic 30; the bubble had been powered by investors believing the market (like house prices before 2007) was on an ever-upwards curve, and that if they did not invest they would miss out — many borrowed in order to buy shares; and economically-illiterate protectionist politicians in America legislated to hike tariffs on imports, rapidly followed by retaliatory action that devastated America's exports and indeed world trade.
When reality dawned share prices plummeted, and aggressive buying by institutions couldn't affect a sustainable recovery. Bank failures came about because deposit takers had been fuelling the speculative buying of stocks and had been heavily involved in underwriting and issuing them; credit became tight; even those who had not suffered great financial harm pulled their horns in, reducing consumer demand.
The Great Depression lasted more than a decade.
popular recent storiesAlso in the news
JGP First Aid & Tai ChiTo ALL current Tai Chi students:Hope everyone is well and keeping safe. I am going to run two outdoor Tai Chi sessions on the field next to the Civic Centre (Public Hall annexe) on the following dates:Tuesday 11th August and Tuesday 25th August from 09.30am to 10.30am.It would be lovely to see you there!All the current ZOOM classes remain the same through to...
Ed: We received this message from John Swancott. Can any local fishermen help?Could you please tell me if it is possible to fish river weaver at Audlem by bridge on Whitchurch road and if so is it a fishing club or owned by a farmer. We're new to area so any information would be appreciatedMany thanks...
Ed: We received this from local resident Geoff Farr. AudlemOnline invited John Lewis Customer Services to respond on 27/07/20 but have not received a responseYou have been warned26th July 2020Some of you may know that I have been very recently widowed.It therefore follows that my only evening companion is my television.My children and grandchildren have urged me to modernise and...
Sunday 2nd Aug
Saturday 1st Aug
Methodist Meeting Rooms