On this day, the New York Stock Exchange encountered "Black Monday". From the opening of the market that day, a large number of stocks were sold, and by the time the market closed, it reached 6 million shares. Even the recording speed of the automatic market recorder could not keep up with the transaction.
The speed was such that the last transaction was not recorded until nearly 2 hours after the market close.
In the following days, the situation continued to deteriorate, and the New York Times Index plummeted by 31 points. On July 11, the New York stock market plummeted again. As soon as the market opened in the morning, the stock price suddenly fell like water from a bursting dam.
, people sold their stocks one after another, with nearly 13 million shares changing hands throughout the day.
Several major banks in New York realized that the momentum was not right and quickly organized "rescue funds" to enter the market. Richard Whitney, president of the New York Stock Exchange, also took over a large number of stocks, hoping to turn the tide and stabilize the stock price. On the 12th, President Hoover issued a statement
Speech: The basic enterprises of the United States, namely the production and distribution of goods, are based on soundness and prosperity. He tried to use this to stimulate a new round of investment. However, after the weekend, all previous
All efforts are in vain.
July 15th was another Monday, another "Black Monday" for the U.S. stock market. On this day, the New York Times Index fell 49 points, and the Dow Jones Index dropped 34 points, a daily decline of 13%. At this time,
No one is planning to come out to rescue the market anymore.
What was more deadly was not this Monday, but the next day. At 10 o'clock in the morning, the New York Stock Exchange had just opened. When people walked into the exchange, they obviously felt something was wrong, and they suddenly sold violently.
The orders came in overwhelmingly, and people were selling their stocks regardless of the price, but there were no orders to buy. Brokers were surrounded by people, and the trading floor was more crowded than a Spring Festival travel train.[
People were frightened by this unprecedented decline. Tens of thousands of people gathered on the streets between Broadway and the East River. They were waiting for someone to come out of the exchange and bring them something good.
News. There may be a few people among them who realize that this disaster may expand, but they cannot imagine that this stock market crash will sweep away the foundation of American prosperity.
On that day, the Dow Jones Index plummeted, with the stock price index falling from 386 points to 298 points, an average drop of 22%. The New York Times Index fell 41 points until the close of the day. The New York Exchange set a record of 16.41 million shares traded throughout the day. During the entire 7
In March, stock prices continued to plummet, and the Dow Jones Index fell to 198 points, a drop of 48%.
On an August night in New York, it was hot and humid. Pierce was holding a bottle of wine and walking while drinking. He didn't want to go home or see his wife and children now. He just wanted to get drunk. When he was drunk, he forgot his worries.
Forgot the pain, forgot the hundreds of thousands of dollars lost due to the stock market crash, forgot that his family would soon be evicted from their current house by the bank and would live on the streets, forgot that he was unemployed and would no longer be able to provide for his wife and children.
Safety and security.
There was a group of people and two police cars surrounding the street corner in front. Pierce also went over to take a look and saw a person covered under a white sheet. Some blood stains had penetrated the sheet. The police were searching a tall building nearby.
, it seems that this person fell from above.
Pierce could tell from the brand of the man's leather shoes that the man's financial situation was very good during his lifetime. The brand of leather shoes he wore were the same as those on his own feet, and they were all high-end goods. But Pierce couldn't mention it at all.
When I became interested, I lowered my head and took a look at the high-end leather shoes on my feet.
Since the beginning of August, high-rise buildings in New York have become the favorite places for all brokers and stock managers. They jump off one after another without caring about the resentful looks of the police who came to deal with the aftermath.
Eyes. Pierce raised his head and drank the last sip from the bottle.
Drinking wine, he raised his head and looked at the tall building opposite. His home was on the 15th floor, but now it no longer belonged to him and his family. That room had been mortgaged to the bank. Maybe when he woke up tomorrow morning,
People from the bank will appear at the door of the house and urge them to move out.
The elevator drove all the way to the top floor. Pierce opened the iron door, and a gust of warm wind blew in his face. He looked around at the surrounding scenery with nostalgic eyes. The night in New York was really nice, with neon lights, street lights, car lights, bars,
Shopping malls and movie theaters, but Pierce felt that all these were far away from him.
This stock market disaster lasted until Christmas. As a result, the stock market reversed slightly before the holiday, and then, as if to say "just kidding", it turned around and fell again. By the end of 1929, the Dow Jones Index fell below 200.
At this point, the stock price of U.S. Steel fell from the previous $262 to $97 per share, and the stock price of David's Sandro Electric Company also fell from $230 to $130. These stocks were once symbols of American prosperity.
Maybe you don’t understand why buying stocks will lead to bankruptcy. According to our current understanding, most people use their spare money to invest in the stock market. Even if the stock price drops, it will only affect the savings of most people but not their
Life.
This problem starts with the installment payment method that was common in the United States at that time. This concept of "buy now, pay later" was not only popular in real estate, electrical appliances, automobiles and other industries, but also slowly spread to the stock market. At that time
, people are very confident in the bull market in the stock market, and they often
It uses a method called "reception buying" to buy stocks. This "reception buying" method only requires investors to invest only a small amount of money, and their brokers will handle the rest. In the United States at that time
In the stock market, more than 90% of stocks are purchased using this method.
What’s even more frightening is that the “borrow to buy” method at that time did not stipulate how much money each person could borrow, which encouraged people’s speculative psychology and greedy desires. Many people borrowed huge amounts to buy stocks. People who borrowed money
There was a lot more, and the interest was very considerable, so thousands of banks in the United States started this kind of business. In 1925, lending to the stock market had become an important part of the U.S. economy. Every dollar lent out
, 40 cents were used to buy stocks.
Huge amounts of loans flowed into the stock market, causing stock prices to continue to rise. In 1928, the overall stock market in the United States rose by 50%. Many people made a lot of money, so more people used loans to finance their losses.
Entered the stock market.
When these amateur investors took borrowed money and jumped into the stock market with full expectations, they did not know how the financial giants on Wall Street operated the stock market. Since the U.S. government at the time had very little supervision over the stock market,
The market has become the law in the stock market. Insider trading is prevalent and no one reports it. In the past, when Wall Street was small and silent, this had little impact. But when more people invested money in the stock market, this
This phenomenon becomes very so-called.
The stock market in this era is extremely unfair and undemocratic. It is like a big casino, controlled by professional investors. When ordinary people use their life savings to gamble, they do not realize that they have no chance of winning.
.People like Joseph Kennedy did not get rich by picking the right stocks. In fact, he and people like him were converting the money of these naive small investors into their own cash through the stock market.
This financial game was played until the summer of 1929. Some professional investors realized that the stock price was likely to be overvalued, and began to gradually withdraw funds from the stock market in preparation for this game. Joseph Kennedy, a big investor, also said privately
: If the shoeshine boy knows as much about the stock market as I do, then I guess I should quit.
In fact, President Hoover was already aware of the instability in the stock market at this time. He once called his economic advisor Thomas Lamont, a senior partner of J.P. Morgan, to specifically inquire. The answer he received was: The U.S. stock market can correct itself.
There is no need for the government to intervene in the stock market, our future is bright
Obviously. This memorandum calmed down President Hoover's worried mind. However, five days later, the stock market crash broke out. (To be continued. If you like this work, you are welcome to vote at Qidian.com, monthly vote,
Your support is my biggest motivation. Mobile phone users please read it.)
