1929 Crash

 

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La Défense, Paris’ financial district, as seen from the top of the Arc de Triomphe

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.

3 thoughts on “1929 Crash

  1. Your post is extremely interesting. Even if I do not read The Razor’s Edge, I found it interesting to learn more about this important event! Your explanations are not too long to read, but allow the reader to better understand the context of the story. I also talk about the context in my blog about Frankenstein, so it is nice to see that you did the same for your readers!

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  2. Very good post! You gave very interesting, clear, and concise information about the 1929 Stock Market Crash. I am sure this post will help many readers of the Razor’s Edge as your post in a good way to get more information on the Crash while not having to navigate through dozens of websites to get the same information. Thank you for sharing! Keep up the good work!

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  3. Your post is a good remember of what leaded to the crash. I knew a little bit about this, but informations that you point out reminded me of things I had forgotten. The summary is not too long, but all the informations needed are there.
    Good Job
    Camille

    Like

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