By Camille Gaudreau
Hi dear readers! I felt the need to talk a little bit more about the financial crisis that occurred in the United States in 1929. I think it should make your comprehension of the following parts easier.
This event is known under two names, the Wallstreet crash of 1929 and the black Tuesday. Wallstreet is the street where big American brokers work. It is the hub of the American economy. The 1929 crash was the worst stock market crash in the United States’ history. A twelve year depression affecting all the western countries started after that date. A lot of people blame the farmers for the crash, because after the war they started to produce more, and apparently too much. The real problem was the speculation and how people were convinced that their economy was unbreakable although there was a lot of speculation. You might wonder what the heck does speculation mean; well it means buying an asset in the hope that it will become more valuable in the future. A mini crash occurred in March 1929, when the federal reserve warned the population that speculation was dangerous. A rich banker thus gave $25 millions in credit to prevent that crash. Although that banker did help the crisis at that point, he did not stop it and it kept getting worse after that. It was so easy to get credit that the population was accumulating incredibly high debts. Many industries, the steel industry for example, had a huge slackening. On September 20th 1929, the London stock exchange crashed, which decreased the exports of the Americans. The US crash started on the Black Thursday, October 24, and although rich bankers tried to stop it, they did not succeed and it continued on the 25th and the 26th. On the Black Monday, on October 28th, the market was still going down, so many investor got out the market, which amplified the downfall of the crash. The crisis was at its peak on the Black Tuesday, on October 29th 1929, and it continued to go down for many years after that, which made many rich people lose their fortune and go bankrupt.
I hope this helped you understand what Isabel and Gray, as well as thousands of American at that time, went through.