Blog #8

The 1929 crash was a major stock market crash that occurred on Wall Street in New York, New York in 1929. Some people believed it was the abuses from the utility holdings companies that contributed to the Wall Street crash of 1929, but most people blame the crash on commercial banks that were to eager to put deposits at risk on the stock market. The Dow Jones, which is a a collection of 30 large companies, had dropped 24.8% on the stock market in 1929. This led to one of the worst declines in U.S history, and ultimately it destroyed confidence in the Wall Street markets and led to the Great American Depression. This panic famously first occurred on October 24th, 1929, also known as “Black Thursday”. On that day a record 12.9 shares were traded as investors rushed to salvage their losses, but the Dow still closed 6 points down after many of the major banks and investment companies bought up great blocks of stock in a successful effort to stem the panic that day. Ultimately, however, their attempts failed to shore up the market. On October 28th, 1929, or “Black Monday”, the market closed 12.8 percent down, and it only continued to regress. The Dow Jones wasnt able to fully recover until about 20 years later, when their stock was finally able to surpass the 200-point level.