Everything hit rock bottom, including the stock market, banks and the most saddening f them all was peoples moral. The Depression hit America hard and fast, it lasted about ten years from 1929 to 1940.
Beginning this tragic era of time was the famous stock market crash also known as black Tuesday. In the 1920's stock prices jumped a tremendous amount, to highs never seen before. Many people such as investors believed that stocks were a for sure thing. So they started borrowing heavily which would enable them to invest more money into the stock market. That was all about to end, for in 1929 the bubble was popped and stocks started to go down very quickly. By 1933 the market had reached its lowest point ever, down a total f 80%. This hid the American economy hard; the strong demand for goods, such as major appliances went down, no more money to invest. The stock market had let many people down.
During the history f the stock market in the United States, there have been many days in which the market declined numerous points. This is referred to as a market crash. One is called "Black Thursday," which marked the beginning f the Great Depressions.
Not only were jobs and savings lost for many people, but also their homes and farms. Thousands depended upon charity to survive. During the worst part f the depression more than fifteen million people were unemployed. This figure amounted to twenty-five percent f the nation's work force. However, even the seventy-five percent f the workforce who were able to maintain or find a job were severely affected. Many experienced major wage reductions or were given only part time work. (Great)
In the 1920's the economy appeared to be very strong in the U.S. and around the rest f the industrialized world. The rapid increase in industrialization, growth in economy, and technology improvements had the leading economists believing that the expansion would continue. During this booming period, wages increased substantially for most workers. As family income rose do did consumer spending.
Stock prices began to rise as well. Billions f dollars were invested in the stock market as people began speculating on the rising stock prices and buying on margin. The enormous amount f unsecured money created by this dramatic ordeal left the stock market essentially off-balance. Many investors were caught up in the race. Believing nothing could go wrong, they invested their life savings. Many got the funds to invest by mortgaging their homes and cashing safer investments such as treasury bonds and bank savings accounts.
As the prices continued to rise some economic analysts began to warn f an impending correction. Unfortunately, most investors ignored the economists' warnings. They believed the strong market would continue indefinitely. Many banks, eager to increase their profits, began speculating dangerously wit their investments. Finally, in October 1929, the buying craze