History
The 1929 Crash: When Wall Street Tumbled
An explainer on the Wall Street Crash of 1929, the devastating stock market collapse that triggered the decade-long Great Depression.
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What is it?
The Wall Street Crash of 1929 was a catastrophic stock market collapse in the United States that signaled the beginning of the Great Depression. The crash unfolded over several days, most notably "Black Thursday" (October 24) and "Black Tuesday" (October 29), when panicked selling erased billions of dollars in stock value. This was the result of a speculative bubble during the "Roaring Twenties," where millions invested with borrowed money, a practice known as buying "on margin." When stock prices faltered, a massive wave of selling was triggered, leading to the market's collapse.
Why is it trending?
The 1929 Crash remains a powerful cautionary tale about the dangers of unchecked speculation and fragile economic bubbles. It is frequently referenced during modern periods of market volatility and economic uncertainty to draw parallels and learn from history. The event led to landmark financial regulations and the creation of the Securities and Exchange Commission (SEC) to protect investors and prevent a recurrence. Its lasting impact serves as a crucial case study in economics and history, highlighting the potential for financial crises to have deep and widespread social consequences.
How does it affect people?
The crash devastated the lives of millions. Investors, from wealthy industrialists to ordinary citizens, lost their life savings. The ensuing panic caused "bank runs," where thousands of banks failed, wiping out the savings of many who had never invested in the market. Businesses lost their capital and were forced to close, leading to mass unemployment that peaked at around 25% in 1933. This economic devastation plunged a generation into poverty and homelessness, leading to a decade of extreme hardship known as the Great Depression.