Lessons from the 1929 stock market crash
SOURCE: BBC (10-9-08)
In October 1929 shares on Wall Street fell sharply following a speculative boom during the "Roaring Twenties".
In two days the Dow Jones industrial average fell by 25% (ending on Black Tuesday, 29 October).
The volume of stocks traded set a record that was not broken for 40 years.
When it finally reached its record low in July 1932, the Dow Jones had fallen 89%, and it did not recover to 1929 levels until 1954.
WHAT WAS THE CAUSE?
Debates continue over the causes of the Wall Street crash.
With stocks rising four-fold over the previous decade, it had all the characteristics of a bubble, with stocks in new technologies like radio leading the way up.
In two days the Dow Jones industrial average fell by 25% (ending on Black Tuesday, 29 October).
The volume of stocks traded set a record that was not broken for 40 years.
When it finally reached its record low in July 1932, the Dow Jones had fallen 89%, and it did not recover to 1929 levels until 1954.
WHAT WAS THE CAUSE?
Debates continue over the causes of the Wall Street crash.
With stocks rising four-fold over the previous decade, it had all the characteristics of a bubble, with stocks in new technologies like radio leading the way up.
Source:
BBC
Source URL:
http://news.bbc.co.uk/2/hi/business/7656949.stm
Date:
10-9-08
