In 1929, on October 24, a destructive process began that had many implications for history. On this day, the New York Stock Exchange on Wall Street collapsed and blew up the pink bubble of many Americans who believed they had a lot of money.
It was the end of a ten-year period in which many people invested their savings in stocks and even borrowed a lot of money from banks to buy more, believing it was the best way to double and triple their money. The peak period came in the middle of 1929. The banks encouraged buying the shares and gave cheap credit until their prices were so high and exaggerated that the fall was inevitable.
The day the stock exchange began to collapse was called "Black Thursday."
Five days later, the second stage of the collapse, the great collapse that led to huge losses for millions of Americans and led to the worst economic depression in American history, came on October 29 and was called "Black Tuesday." The collapse caused public panic.
Masses of people who invested their best money on the stock market went into debt. Many banks went bankrupt because they gave many loans to people who could not repay them. Many businesses have lost their credit limit and have been closed down, making millions of people unemployed.
The collapse of the stock exchange also affected Europe. The difficult economic situation has also affected the political stability of many countries and sees it as one of the causes of the outbreak of World War II.
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| In the photo: A crowd gathers at the intersection of Wall Street and Broadway streets after the collapse of 1929. |
One of the stories from that period is about Joe Kennedy, a famous rich guy who left the stock market on time and saved his money. He said he discovered that investing in the stock market was a fashionable trend and was too popular when his shoe-shine chef gave him tips on investing.
Another investor who told about the early signs of the collapse was Bernard Baruch, who said he saw the signs as taxi drivers would talk to him about their investments and give him advice.
October 29th is also Internet Day