1. Wall Street Crash 1929

2. Overview
• Bull and Bear market
• Before Black Thursday
• The Wall Street Crash
• Big Depression / World Economic Crisis

3. What does Bull and Bear market mean?
Bull market Bear market

The share prices The share prices lost a lot
expanded over long of points over long time
time Disaster for all investors

Many investors bought
a lot of shares

4. In the forefront of the Wall Street Crash

Dow-Jones-Index was founded in 1894

Bull market from beginning to the first crash

The US population bought a lot of shares

Most points on 3rd September 1929 (381 P)
− From this day to the crash the share prices fell

5. The Big Crash!

On 24th October 1929

the Wall Street Crash began with Black Thursday

On Friday:
− Some shares lost more than 30%
− Little plus; all banks tried to stabilize the share prices

Finally they collapsed on the Tuesday

6. Tuesday: The Really Big Crash

The working-class people buy all shares with loans
=> the banks want this money back

16,5 Mio. shares were traded

Single Shares lost 99% of their value

The Dow-Jones-Index had 260 Points

8. Big Depression

The basis of the companies were their shares

Insolvenvencies, mass lay-offs, loss of trust by the
population

Countries (like Germany) had debts with the USA => who
wanted all their money back

Unemployment rate rose to 30% (1933)

Average wages fell to 40% of the level before the world
economic crisis started

Roosevelt: Social Secruity Act (insurances)

During WWII the world economy was on the same level as
1929