What were the consequences in America when the wall street was crashed
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Answer:
Explanation:
The Wall Street Crash of 1929, also known as Black Tuesday (October 29), the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its aftereffects.
The crash, which followed the London Stock Exchange's crash of September, signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries.
EFFECTS
The Great Crash of 1929 propelled gold, a historically viable store of value and durable medium of exchange, to unprecedented value. In 2016 inflation-adjusted terms, the price of a single ounce of gold rose from just $291 an ounce in 1929 to $539 in 1939.
In 1930, 1,352 banks held more than $853 million in deposits; in 1931, one year later, 2,294 banks went down with nearly $1.7 billion in deposits. Many businesses failed (28,285 failures and a daily rate of 133 in 1931).
Together, the 1929 stock market crash and the Great Depression formed the largest financial crisis of the 20th century.
The panic of October 1929 has come to serve as a symbol of the economic contraction that gripped the world during the next decade.
The falls in share prices on October 24 and 29, 1929 were practically instantaneous in all financial markets, except Japan.
The Wall Street Crash had a major impact on the U.S. and world economy, and it has been the source of intense academic debate—historical, economic, and political—from its aftermath until the present day. Some people believed that abuses by utility holding companies contributed to the Wall Street Crash of 1929 and the Depression that followed.
Many people blamed the crash on commercial banks that were too eager to put deposits at risk on the stock market.
The 1929 crash brought the Roaring Twenties to a shuddering halt.
As tentatively expressed by economic historian Charles P. Kindleberger, in 1929, there was no lender of last resort effectively present, which, if it had existed and were properly exercised, would have been key in shortening the business slowdown[s] that normally follows financial crises.
The crash marked the beginning of widespread and long-lasting consequences for the United States. Historians still debate the question: did the 1929 Crash spark The Great Depression, or did it merely coincide with the bursting of a loose credit-inspired economic bubble? Only 16% of American households were invested in the stock market within the United States during the period leading up to the depression, suggesting that the crash carried somewhat less of a weight in causing the depression.
The Wall Street Crash is usually seen as having the greatest impact on the events that followed and therefore is widely regarded as signaling the downward economic slide that initiated the Great Depression.
Source : Wall Street Crash of 1929 - Wikipedia