englisch (wallstreet crash) patrick corrected
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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