Investing Advice

1929 Stock Market Crash

There have been stories about the stock market "crash" of 1929 causing dozens of people to commit suicide by jumping out of windows and even causing the great world-wide depression of the 1930's. It is told that millions of people's fortunes were wiped out on October 28th and 29th in 1929, when the Dow dropped 69 points to 230. Since it was common for investors to use the liberal 10:1 margin (big loans to buy stock) available to them, many indeed did lose their entire investments.

But in 1929, most Americans didnít play the stock market, but kept their savings in banks. It was the failure of so many banks, along with rising unemployment, that caused so much suffering during the early 1930's.

There is no evidence that anyone leapt to their death because of the market crash, although several did shoot themselves. One man decided to end his misery by leaving his gas stove on and then taking a long nap. And then there was the guy who had a heart attack at his broker's office watching the dropping numbers on the ticker tape. The one person reported to jump from an upper floor of the Plaza Hotel in New York City, did so several days before the market tumbled. Will Rogers, the great humorist, picked up on it and included the "jumping out of windows" in his routine for a number of years, and so the legend.

It should be mentioned that as bad as that day was for the stock market, it got worse. The market didn't bottom until August 12, 1932 when the Dow hit a low of 63. This was all the way down to where the Dow began in 1896 (all about the Dow beginning page 48).
 

Some early companies that are still in business today         established
J.E. Rhoads and Sons   (conveyor belts, originally buggy whips)  1702
Dexter   (high-tech adhesives & coatings) 1767
D. Landreth & Co.   (seeds) 1784
George R. Rulh & Sons   (bakery supplies) 1789
Burns & Russell   (building materials) 1790
Thomas Nelson   (publishing) 1798

Other History of Wall Street and Stock Market Topics:
  1. History of Wall Street and Stock Markets
  2. More Wall Street History
  3. 1929 Stock Market Crash
  4. More Stock Market History

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