ECONOMICS. Thursday 31st of October 1929. The
Wall Street Crash of 1929, also known as
Black Thursday, that, despite earlier
signs, marked the beginning of the
Great Depression.
The
Great Crash was due to a number of things, among them the
boom period, both economically and socially, of
the roaring 20s. This had led to an increase in
inflation,
prices and
credit loans, which had given the
false appearance of economic prosperity.
At the same time people were encouraged to invest in the stock market, and the introduction of
newbies to the stock market, with the
illusion that they could
get rich quick, injected cumulatively
insane amounts of money into the market, causing stock prices to rise so high they did not accurately represent any sensible value.
The market, unable to sustain these false prices, eventually
crashed. Due to it's massive
sphere of influence, this resulted in
national and subsequent
global economic turmoil - ala
Great Depression.
Effects of the Great Crash still exist today. For instance, many
superstitious investors still shy away from investing on Thursdays, and more recent crashes have occurred on Thursdays as well.