The Stock Market Crash of 1929
The market crash of 1929 experienced during the Black Thursday was followed by a general optimism and calmness on the part of investors, since they knew that the bankers have taken the necessary actions to prevent future failures. Their confidence was also based on the assumption that the market is expected to bounce back from the following Thursday. However, the general calmness was greatly disturbed on Monday.
Known in the financial world as the Black Monday, the October 28th, 1929 was one of the most terrible days in the US stock market. No one was brave enough to enter the situation and fix the chaos. No one of the previous "heroes" exercised its knowledge to save the day, neither Richard Whitney, nor the bankers. Even Lamont did not give the usual explanation to the press. Only after the market closed did the latter made a few comments, from which the tone of pessimism was felt. Since it was clear that there is little possibility of saving the market large numbers of shares, amounting to approximately 9.25 million, were traded by the speculators. Everyone hoped not to incur too destructive losses.
This was the second worst day of the US stock market ever experienced. The US stock history knows another Black Monday, which was experienced in October 19th, 1987, to be distinguished as the worst day in the financial history.
The fall of the ticker type a week before the Black Monday and the significant amount of shares, amounting to nearly 6,091,870, gave the first signs to the investors that something is to happen. They embarked on selling. Most of them blindly sold their shares, never making a reasonable analysis of the current situation.
The general confusion was heightened by Professor Irving Fisher, an economist from the Yale University. He gave reasons for the low prices of the stocks and prediction of the increase of their real value. During a bank meeting in the same week, he gave his opinion about the state of the security values, which he viewed as not being inflated. Additionally, he presented his view of the overall US economy as "high plateau of prosperity". Unfortunately, Fisher's reputation as an expert, who has always managed to make the most accurate predictions about the future state of the stock market, was greatly damaged by the events surrounding the Black Thursday, Monday and Tuesday.
After the Black Monday the stock market was about to experience its worst day in history, which resulted in destructive losses and long felt negative consequences - the Black Tuesday.
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