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GDTIMERINE; 1929 (March 4: Herbert Hoover became president. His laissez…
GDTIMERINE; 1929
March 4: Herbert Hoover became president. His laissez-faire economic policies did little to stop the Depression. He believed a free market economy would allow the forces of capitalism to fix any economic downturn. As a result, he lowered the top income tax rate from 25 percent to 24 percent.
August: The economic activity from the Roaring Twenties reached its peak. After that, it started to contract. It was the true start of the Great Depression. That same month, the Federal Reserve raised the discount rate from 5 percent to 6 percent to prevent inflation and defend the gold standard.
September 3: Dow reached a closing record of 381.7. The stock market would not return to its pre-crash high for the next 25 years
October 24: Black Thursday kicked off the stock market crash of 1929. Stock prices immediately fell 11 percent. Wall Street bankers bought stocks, so only 2 percent was lost by the time the market closed.
October 28: On Black Monday, stocks prices fell 13 percent.
October 29: On Black Tuesday, the market lost another 12 percent as a record 16 million shares were traded. When banks intervened this time, they worsened the panic.
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