Historical Importance: The Stock Market Crash of 1929 devastated the economy and was a key factor in beginning the Great Depression.
Dates: October 29, 1929
Also Known As: The Great Wall Street Crash of 1929; Black Tuesday
Overview of the Stock Market Crash of 1929:
The end of World War I heralded a new era in the United States. It was an era of enthusiasm, confidence, and optimism. A time when inventions such as the airplane and radio made anything seem possible. A time when 19th century morals were set aside and flappers became the model of the new woman. A time when Prohibition renewed confidence in the productivity of the common man. It is in such times of optimism that people take their savings out from under their mattresses and out of banks and invest it. In the 1920s, many invested in the stock market.
The Stock Market Boom
Although the stock market has the reputation of being a risky investment, it did not appear that way in the 1920s. With the mood of the country exuberant, the stock market seemed an infallible investment in the future.
As more people invested in the stock market, stock prices began to rise. This was first noticeable in 1925. Stock prices then bobbed up and down throughout 1925 and 1926, followed by a strong upward trend in 1927. The strong bull market (when prices are rising in the stock market) enticed even more people to invest. And by 1928, a stock market boom had begun.
The stock market boom changed the way investors viewed the stock market. No longer was the stock market for long-term investment. Rather, in 1928, the stock market had become a place where everyday people truly believed that they could become rich. Interest in the stock market reached a fevered pitch. Stocks had become the talk of every town. Discussions about stocks could be heard everywhere, from parties to barber shops. As newspapers reported stories of ordinary people - like chauffeurs, maids, and teachers - making millions off the stock market, the fervor to buy stocks grew exponentially.
Why Stock Markets Crash: Critical Events in Complex Financial Systems
Book (Princeton University Press)
They all have stock markets2006-03-21 09:50:44 by Kus_Umak
If you think that they will crash - you're welcome to short the stocks.
However, according to financial analysts many markets are booming there because of new investments. Oil prices are benefiting the region and the revenue is being invested locally (in the past a higher percentage of investment dollars were sent to europe the US and asia for investment).
If you have a significant amount of money (200K or more) that you are willing to stake on your forecast that the arab markets will crash, you could go to a large financial institution that has a local presence in the region, such as citibank, chase manhattan, Bank of america and ask them to invest it for you to short the market
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