Today, I will be teaching you about Black Tuesday, and how it was horrific.
October 29 1929
Black Tuesday was when the New York stock market crashed. The financial loss was too much for some people. Some people killed themselves by jumping out of building windows. This date, October 29, 1929, represents the 'spark' of the Great Depression, the worst economic collapse in the history of the modern industrial world. During Black Tuesday, over $16 billion was lost in stocks trading on Wall Street, people withdrew all their savings from banks. The banks did not have enough cash on hand to "cover" the people's savings. The banks paid $.10 on the dollar, and the banks were forced to close. During this time, the roaring twenties, 40% of banks went bankrupt.
Dow Jones Industrial Average
The industrial average dropped -12%. The word industrial means stocks or shares in companies. Trading goods was a volume that was so high that it delayed the ticker tape. The tape is how they could see if stock was going up or down in value. On Black Tuesday, the Dow Jones Industrial average opened at 252.6 and fell to 212.33, it closed at 230.7, an 11% lost. By November 13, 1929, over $100 billion dollars was lost from the American economy. Today, that value would be $1.3 trillion. The pictures below show people in the street after stock market crashed.
Panics By Civilians
There were numerous causes of death, but most of them were from people panicking. One of the reasons was that they didn't have insurance on their bank deposits. This led to people jumping out of windows to their death. Prominent banks attempted to stop the stock market crash but failed due to not having enough cash to cover customer savings.
In conclusion, I think Black Tuesday was a horrific event not only because it was the spark of the depression, but many people lost their lives due to financial stress. The Great Depression spread from the United States to the rest of the world, lasting from the end of 1929 until the early 1940s. Many people today commit suicide, and crimes such as burglary and robbery due to financial stress. However, there are programs now established that help people deal with their finances. To protect peoples savings, bank deposits are now insured by the FDIC (Federal Deposit Insurance Corporation).
Amadeo, Kimberly. "Black Tuesday: Definition, Cause, Kickoff to Depression." Useconomy. N.p., n.d. Web. 12 May 2015.
"Black Tuesday." Definition & Example. N.p., n.d. Web. 12 May 2015.
Infobase Learning - Login." Infobase Learning - Login. N.p., n.d. Web. 12 May 2015