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The year 1929 stands as a pivotal moment in global economic history, marked by a resounding collapse of the American stock market, specifically on Wall Street, which served as the initial spark for what later became known as the "Great Depression." The repercussions of this crash were not confined to the United States alone but extended to the economies of the world, leaving behind an era of recession, unemployment, and despair.
"Black Thursday": The Beginning of the Catastrophic Collapse
On October 24, 1929, a day that became known as "Black Thursday," the New York Stock Exchange experienced a sudden and violent collapse of a market that had been steadily rising. At the start of trading, the Dow Jones Industrial Average lost more than 22 percent of its value, a staggering drop that triggered panic among investors.
Attempts at Recovery and the Escalation of the Crisis
Although stocks managed to recover a significant portion of their losses during the same day, this proved to be only a temporary lull before an impending storm. On October 28th and 29th, a renewed wave of massive selling occurred, and further significant losses were recorded on the exchange.
The Great Depression: A Global Economic Crisis
The Wall Street Crash in October 1929 marked a turning point and the beginning of the "Great Depression" in the United States. The financial crisis quickly transformed into a comprehensive economic crisis, characterized by a sharp decline in production, unprecedentedly high unemployment rates, and the bankruptcy of numerous companies and financial institutions.
The repercussions of the Great Depression were not limited to the United States; they extended to significantly impact the economies of other countries linked to it commercially and financially, turning the American crisis into a devastating global economic crisis that lasted for many years and left profound effects on the economic and social systems in various parts of the world.
Conclusion
The Wall Street Crash of 1929, which began with "Black Thursday," represents a central event in economic history. It served as the spark that ignited the Great Depression, a global economic crisis that exposed the fragility of economic systems and led to radical shifts in economic and social policies in an attempt to avoid the recurrence of such catastrophes
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