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The Great Crash of 1929 (Results of the Crash (Banks had less money to…
The Great Crash of 1929
There were indications that the stock market was getting shaky by early Sept 1929, people were still optimistic
• Speculators were still flooding the market and share prices were holding. However, in October, the market began to crush.
Timeline of the Crash
21st Oct → the Dow fell so sharply that the ticker fell behind. Thus meant that information being given to buyers and sellers was incorrect. Sellers knew that process were falling but not by so much, so they panicked and there was a mini collapse that day.
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25th and 26th Oct → prominent bankers and investors stepped in and attempted to stem the fall by buying large no. of shares → increases demand. This was partially successful
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What caused the crash
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Lack of Confidence
people lost confidence in the economy, which sparked the initial selling of shares
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Results of the Crash
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People lost confidence in themselves, in business and in the govt's capacity to solve problems in the economy
Affected global economies across the world and instigated depressions in other nations (eg. in Australia)