Wall Street Crash 1929

Overview

• Bull and Bear market

• Before Black Thursday

• The Wall Street Crash

• Big Depression / World Economic Crisis

What does Bull and Bear market mean?

Bull market The share prices

expanded over long time

Many investors bought a lot of shares

Bear market

The share prices lost a lot of points over long time

Disaster for all investors

In the forefront of the Wall Street Crash

Dow-Jones-Index was founded in 1894 Bull market from beginning to the first crash The US population bought a lot of shares Most points on 3rd September 1929 (381 P)

From this day to the crash the share prices fell

The Big Crash!

On 24th October 1929 the Wall Street Crash began with Black Thursday On Friday:

Some shares lost more than 30%

Little plus; all banks tried to stabilize the share prices Finally they collapsed on the Tuesday

Tuesday: The Really Big Crash

The working-class people buy all shares with loans => the banks want this money back

16,5 Mio. shares were traded Single Shares lost 99% of their value The Dow-Jones-Index had 260 Points

Big Depression

The basis of the companies were their shares Insolvenvencies, mass lay-offs, loss of trust by the

population Countries (like Germany) had debts with the USA

=> who wanted all their money back Unemployment rate rose to 30% (1933) Average wages fell to 40% of the level before the

world economic crisis started Roosevelt: Social Secruity Act (insurances) During WWII the world economy was on the same

level as 1929