Today is the 79th anniversary of The Black Tuesday

October 29th, 2008 - 3:53 pm ICT by Amrit Rashmisrisethi  

Black TuesdayCurrently, Stock markets and financial institutions all over the world are facing their worst crisis. Will this cause a repeat of the Great Depression of the 1929s? If so then it will surely affect the whole world not just America.

In the late ’20’s, the stock market in the United States underwent rapid expansion and continued for the first six months following President Herbert Hoover’s inauguration in January 1929. The time of the crash, New York City grew to be a massive metropolis, and the Wall Street district was one of the world’s leading financial centers. The New York Stock Exchange (NYSE) was the largest stock market in the world.

Prices of stocks made heights known as “Hoover bull market,” and the public, from banking and industrial magnates to chauffeurs and cooks, rushed to brokers to invest their surplus which they could sell at a profit. Billions of dollars were drawn from the banks into Wall Street for brokers’ loans to carry margin accounts.

October 24, is known as Black Thursday and on the same day a record of 12.9 million shares were traded as investors rushed to salvage their losses and on October 28 known as Black Monday, the market closed down with 12.8 percent. On Black Tuesday (October 29) more than 16 million shares were traded and Dow Jones lost another 12 percent and closed at 198 with a drop of 183 points in less than two months.

The Great Crash of 1929, was the most devastating stock market crash in the history of the United States. After the crash, Dow Jones Industrial Average recovered in 1930, reaching a point of the great bear market in 1932. The Dow Jones did not return to the 1929 level till the late 1954 The Dow did not and was lower at its July 8, 1932 level than it had been since the 1800s.

We hope that the current situation is only a temporary setback and the markets recovers much sooner than not take decades.

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