Photo: investors flock to Wall Street New York to sell their shares, western farmers have stock, but no one to sell it to.
October 29 1929
After a brief recovery in the US stock market over the weekend, share prices have once again fallen dramatically.
On Tuesday, just days after what has been called ‘Black Thursday’, the US share market took another turn for the worse. Sixteen million shares were sold yesterday alone, leading to a New York Times Journalist (author unknown) declaring the day “The most disastrous in Wall Street’s history”.
But the latest crash, combined with worldwide agricultural overproduction could lead to something much worse than cause a slump in the American Economy. The US is at the centre of the global economy and a recession there could have a major impact worldwide. However, British economist John Maynard Keynes believes there is no need to worry, saying “There will be no serious direct consequences in London. We find the look ahead decidedly encouraging.”
It is expected that the newly elected US President Hoover will cut taxes and expand public works spending in an attempt to lessen the effects, however, Hoover has stated that ‘Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body – the producers and consumers themselves.’ This leaves millions of Americans in fear of the lack of government support they are likely to receive in the coming months, or even years.
The recent crashes have led economists to question how it all went so wrong, some blaming overvalued share prices, and others believing that the US stock market was a ticking time bomb.