Black Thursday

Event Background

The economic crisis in the United States from 1929 to 1933 is simply a disaster, because the US economy has seriously recession, the industry is depressed, and the history is called "Great Depression". On October 24, 1929, the United States ushered in its "black Thursday". On this day, the US financial community collapsed, and the stock fell into the abyss from the top one night, and the fell of the price fell. The stock market is not able to keep up. On Tuesday, 19 October 1929, the New York stock market fell to the extreme, so some people used "black Tuesday" to refer to this incident. Thereafter, a total of 30 billion US dollars in a total of 30 billion US dollars disappeared, which is equivalent to the total expenditure in the First World War. With the collapse of the stock market, the US economy is fully caught in a devastating disaster. The terrible chain response has occurred soon: crazy squeezing, banks closed, factory closed, workers are unemployed. Thousands of families have been driven out of the house because they can't pay, they have been driven out of their houses. They have to use wooden boards, old iron, oil cloth, and even kraft paper, and even the streets, four wanders.

Black Thursday

Background introduction

After 1919, after the "World War", new equipment, construction and other market demands are very weak, and the economic growth is very slow, and there are few fields for investment. The idle funds of the company began to flow to the securities market. After a large amount of funds can't find investment, after entering the securities market, the stock price has skyrocketed, and the price is thrown with a few times the price of the actual price, resulting in serious bubble. The increase in stock prices, resulting in more money on stocks, and the securities market has an overheating phenomenon, and the record is refreshed every day. However, on October 24, 1929, in "Black Thursday", the bubble broke down, the stock price plummeted, and the high-priced stock became a waste paper, grabbed the purchase of securities and individuals a poor light egg. .

Cause Analysis

Before October 1929, Wall Street stock market has emerged for 7 years, and all stock prices rose. At the beginning of September 1929, a statistician predicted that the United States would have an unprecedented large depression, and the Jones index fell about 10 points; then Huover President claims that the US economy is fundamentally on, the stock market is once again large Climb, but the whole Wall Street has enveloped a alert atmosphere. By the day on October 24, there was 12,894,650 stocks in the day. The stock index was 13% of the "black Monday" on October 28; from October 29, the stock market crashed to the extreme There are 16.38 million stocks easy to fell 22%, breaking history again, and the loss is more than 5 times higher than that of the United States owed to the United States. During this time, although some financial giants have tried to save the stock market, such as Morgan's agent Richard Whitney once eaten 10,000 steel company stocks, but it is no harmonious, the stock market is diarrhea. This felt continued until the mid-1932, after 34 months, the Jones Industrial Index fell 87.4%, the biggest decline is the stock of metallurgical, machinery, automobiles, electricity, chemical and other industries, and the decline is more than 90%. New York's stock market plunged also spreads in the UK, Germany, France, Belgium, Austria, Sweden, Norway and the Netherlands, which triggered a large-scale, lasting stock market fell. Since then, the world financial and economic development has fallen into a long-term depression.

After arriving in the historic valley in July 1932, it returned to the highest level in 1929 in 1954. In terms of the physical economy, by 1933, the US national product was reduced from $ 141.5 billion, down by $ 141.5 billion, decreased by 30%, and the company's closed 8,56,000, the industrial production was 55.6%, and the import and export was reduced by 77.6%. Bank closed 10,500, accounting for total 49%, the unemployment rate reached 25%.

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