Nevertheless, the crisis hit the Netherlands as well. This was a clear signal that the Dutch economy was not that dependent on what went on in America yet. By that time, the American stock exchange had lost 48% of its value.ĭuring the same period, the Amsterdam CBS index (the contemporary AEX index, if you will) dropped by 15%. Sharp price drops continued until November 13th. Investors panicked and tried to get rid of their securities. In the days after October 21st, the decrease continued at an accelerated pace, bottoming on Thursday, October 24th: Black Thursday. The criticism became more and more strong. Did those prices still truly reflect the economic situation? After all, a few major bankruptcies had occurred, and unemployment increased. The Dow Jones reached its highest point on September 19th, but gradually, critical comments increased. The stock exchange could only be closed in case of emergency, and apparently, this was not one.Īfter years of rising share prices and an atmosphere in which abundance reigned, prices began to drop in New York on Monday evening, October 21, 1929. After all, the New York and London stock exchanges also closed for two days because of a market crash. This was prompted by a petition in which 181 of the 795 members asked to close the exchange on Saturday, November 2nd. First written and published in 2003.On November 1, 1929, the board of the Amsterdam stock exchange gathered for an emergency meeting.
Written by Bill Ganzel of the Ganzel Group. See how other stock market crashes compared with the 1929 crash in this "Then & Now" feature. But there has never been another "Great" Depression. Since the 1930s, there have been several stock market crashes and periods of economic slowdown. The crash, along with other factors, produced an economic slowdown that lasted over 10 years and became known as "the Great Depression." Jobs were hard to find.įarmers and rural residents felt the stock market crash as well people and companies that used to buy food and other agricultural products no longer had the money to buy much of anything. In other words, companies were worth barely more than 10 percent of their former value. By the time it was over, the average value of companies in the Dow Jones Industrials Average had dropped almost 90 percent from a high of 381 to a low of 41. The stock market downturn continued for at least three years. Their farm was no longer worth what they still owed on the land. After the crash and the ensuing Depression, land values dropped to less than half of what they had been. Her family had bought a farm but were waiting to move on it. She had just emigrated to Nebraska from Denmark a few months before the crash. That's what we heard anyway."įor Carla Due (right below), the stock market crash had a very personal impact. He didn't own any stock, but remembers, "there was people jumping out of two-story, three-story buildings in New York. He was 19 years old and living in York County, Nebraska, in 1929. LeRoy Hankel (right) still remembers the crash vividly. Bob says, "There were slim pickings around the dinner table." The stock went up for a while and then dropped well below what he paid for it. He had borrowed money against the family car to buy a few shares. Millions of people from all over the world who owned stocks waited helplessly as stock values crashed.īob Aden's father in Nebraska was one of thousands of owners of General Motors stock. The stock market had crashed.Īll across the country and all around the world people paid attention to the news closely. That day became known as "Black Tuesday." Fortunes were wiped out. Over two days, the value of companies being traded on the stock exchange fell almost 13 percent on Monday and another 12 percent the next day. More and more investors sold their stocks at whatever price they could get. Stocks that they had bought at high prices began to drop. In late October 1929 just a few days before Halloween investors in New York City began to panic. The Impact of the Stock Market's Crash on Rural America
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