The Great CRASH

The Great CRASH

And its Effects1929 - 1933

President Hoover’s Inauguration

March 4, 1929 PresidentHoover took office

“I have no fears for the future of our country – it is bright with hope”

1920s Stock MarketWhat were the characteristics of the

stock market in 1920s?

1929 Stock Market

• Beginning of September: started to drop

• October: downward trends

• October 22: “I know of nothing fundamentally wrong with the stock market or with the underlying business and credit structure.” – leading bank president speaking with reporters

1929 Stock Market

• After October 22: – Stock values declined– Brokers started to unload stocks– Leading bankers formed a pool to buy stocks to

halt slide– Prices steadied for a few days– Then stockholders began to unload – October 29: single most devastating day

What does a “Crash” mean?

Impact: Stock Market Investors

How did the Crash impact the rest of the population?

4 major circumstances occurred:

• Failure of U.S. Banking System

• Mass Unemployment

• Mass Homelessness

• Mass Hunger

Failure of Banking System

Mass Unemployment

Mass Homelessness

Mass Hunger

Did the Crash cause the Great Depression?