The 1929 Crash Of The Stock Market & Other Stock Market Crashes

The 1929 Crash Of The Stock Market. The 1920’s were a time of peace and great prosperity.  By the end of the 1929 stock market crash, 16 billion dollars had been shaved off stock capitalization.  Millionaire margin investors became bankrupt instantly, as the stock market crashed on October 28 th and 29 th.  The 1929 stock market crash was beneficial for some, however.  Kennedy’s father sold before the 1929 stock market crash and kept millions in profit.  The stock market crash of 1929 launched the Great Depression.  The stock market crash of 1929 was identical to any other financial bubble.  Prior to the 1987 stock market crash, the bond market had experienced one its worst declines in history.  'A financial crisis such as the stock market crash, or interest rates so high it chokes off the economy.  "The debate is on about whether this summer's stunning collapse in bond prices mirrors their declines in the summer of 1987, which eventually led to the stock market crash in October that year.  Confidence that there will be no stock market crash in the succeeding six months generally declined (though with a lot of ups and downs) over the years since 1989 until the stock market bottomed out in late 2002.  In 1929, a stock market crash caused the Dow Jones index -- one of the main indices used to evaluate the health of the American economy -- to lose nearly 12 percent of its value in one day [source: New York Times]. 

In 1987, another stock market crash caused the Dow to drop 508 points in one day -- a loss of 22.  In 2000, the stock market crashed again when the dot-com bubble burst and highly inflated Internet and tech companies lost their value all at once.  But despite the government's efforts to prevent another stock market crash, in theory, a free market society isn't supposed to have any intervention in its economy

During the stock market crash of 1929, the Dow Jones Industrial Average (DJIA) fell by 34 percent from its peak in September to the end of 1929.  What happens when the stock market crashes.  When we say that the stock market crashes we mean that there is dramatically drop in the value of the stocks across the board.  Occasionally, economic and political situations may also play a vital role in the stock market crash.  The stock market crashes cause economic depressions on the whole by the virtual influence on the every aspect of the economy.  Many people are panicked by the sudden crash in the value as most of the stock market crash follows a bull market and may become more cautious with their money.  The stock market crash leads to major unemployment.