Wall Street collapse 1929

Wall Street Crash. The 1929 stock market crash was a result of an unsustainable boom in share prices in the preceding years. The boom in share prices was caused by the irrational exuberance of investors, buying shares on the margin, and over-confidence in the sustainability of economic growth.

More than 13 million shares were offered on the selling list, which made the bid higher than the demand and the stocks headed towards the bottom, chaos prevailed in the place where investor money began to evaporate and the matter got worse when the number of shares offered increased to 30 million shares in the days that followed, which makes Stock prices without value make many investors in deep debts and a heavy burden for banks that declared bankruptcy due to the deep debts that accumulated from the large number of loans that are not repayable due to the stock market crash and the bankruptcy of investors

It was the most devastating stock market crash in the history of the United States when taking into consideration the full extent and duration of its aftereffects. The crash, which followed the London Stock Exchange’s crash of September, signaled the beginning of the Great Depression.

By the winter of 1932, America was in the depths of the greatest economic depression in its history. The number of unemployed people reached upwards of 13 million.