Stock Market Crash

Thursday, October 24th, 1929, the New York Stock Exchange(NYSE) fell on its knees people panicked, trades were increasing like never before. Stock investors tried everything to drop out, stock prices dropped so rapidly top bankers had barely enough time to react. Five days later, the stock market completely crashed. Companies went bankrupt, stocks became worthless, civilians were forced on insolvency, many suicide while others lived in despair. This even was then known as "The Great Crash".

Identity of the Crash
To say that the crash on Black Tuesday caused the depression later on is very untrue. The stock market crash is only a symptom of the sick economy. Problems were brewing way before the out spread of economic depression. Collusion between officers and capitalist, instability in the stock market, and lack of well structured financial policies. All these subtleties have pointed out the illness of the economy in America. Still, countries and people alike depended on it. Slowly and vaguely the problems surfaced, causing the stock market crash of 1929 and a depression worldwide

Abnormal Stock Investments
e108d_stock_market_crash_1930_1d.gifDuring the great war, the advance industrialized Europe regressed as North Americans took the chance to prosper its own industries, eventually replacing Europe as the respected economic leader. Productions in North America burst forth creating a huge boom in its economy. After the war, optimism of Canadian and the U.S economy was still at its peak. Around this time investing in the stock market became quite popular. The growing North America bull market attracted many. Some turned rich over night by buying and selling stocks. Not realizing the risk, many people became heavily relied on the ups and downs of the stock market, investing all their savings, gambling for a change to obtain a ticket to the upper class.

Credit Abuse
Many investors bought stocks on margin, meaning they borrowed money to invest. In fact, credit buying had became a custom in the North American society during the roaring twenties. The rule is simple. Enjoy it now and pay for it later. People bought many things off debts but by the time most debts where paid off, the items that were purchased were ready to be thrown out. Comedians joked, experts warned, it seems impossible to stop this dangerous cultural way to spreading amongst society causing insolvency during the depression.

Relief Garden

As economy in Canada and the U.S. grew, Europe was also recovering. Production of civil goods resumes in various parts of Europe, colliding with North American exporting goods competitions aroused. Some countries then rose tariffs hoping to protect its own businesses. As one influence another, international trades were suddenly cut off. Businesses had to target inward towards their own countries. Exporting leaders took a huge blow having over productive goods stockpiled. Contributing to the unemployment and deflation, international cash flow slowly resumed in the mid 1930s.

Workers Looking for Jobs
Dependence and influence can be quite dangerous. Canada's dependence on primary resources like minerals and paper had cost the economy greatly. Prices of primary resources are easily influenced by the market, and by relying the economy on only a few of the resources can be very risky. As the prices of the resources increase the economy may grow, but if the prices drop the economy may turn black until it rises again. Since the turn of the century Canadian's reliance on the huge market of the United States had been increasing tremendously. This dependence can be good or bad. The huge population of the U.S. provided Canadian businesses a huge market to chew on, but when that market crashed businesses suddenly lost all their customers. With no one to sell their products to, businesses became unprofitable, causing a serious downfall in Canada's economy.

Karl Marx
The Great Crash marked the beginning of the Great Depression. This economical downfall caused democracies around the world to be questioned. Chaos emerged, civilians were willing to try anything for bread and shelter. Ambitious, smooth talking authoritarians aroused, giving birth to the second great war ending the depression. The 1929 Stock Market Crash effect gain the Canadians' and the rest of the world's attention on the importance of financial stabilities. Governments starts creating programs and assigned officials to surveillance the economic and financial status of the country. As another crisis began in the next millennium, it was properly tranquilized due to the experience of the Great Crash in 1929.