THE CRASH OF ‘29
During the summer, America entered a normal recession as prices dropped, meaning that production, and unsold goods piled up. Stock prices continued to rise, and by the fall prices had raised to levels that couldn’t be justified by future earnings. The bubble finally burst on October 24, 1929. A record breaking 12.9 million shares were traded on what was known as “Black Thursday”. Five days later, some 16 million shares were traded, giving the name “Black Tuesday”. Millions of stocks were now worthless, and people who bought stocks on margin were wiped out completely. Consumer confidence vanished, and the down turn in investment slowed production and factories and businesses started firing their workers.