USA HISTORY

Detailed explanation-1: -On Black Monday, October 28, 1929, the Dow Jones Industrial Average declined nearly 13 percent. Federal Reserve leaders differed on how to respond to the event and support the financial system. The Roaring Twenties roared loudest and longest on the New York Stock Exchange. Share prices rose to unprecedented heights.

Detailed explanation-2: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.

Detailed explanation-3: -Early US Stock Market Crashes. The first U.S. stock market crash took place in March of 1792. 2 Before the Financial Crisis of 1791 to 1792, the Bank of the United States over-expanded its credit creation, which led to a speculative rise in the securities market.

Detailed explanation-4: -On October 29, 1929, “Black Tuesday” hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. The panic selling reached its peak with some stocks having no buyers at any price.

Detailed explanation-5: -Business houses closed their doors, factories shut down and banks failed. Farm income fell some 50 percent. By 1932 approximately one out of every four Americans was unemployed.