Editing Wall Street crash of 1929 (section)

==Crash==
[[File:19291030 Crash of '29 - New York Times.jpg |thumb |upright=1.35 |After large market declines on October 28 and 29, ''The New York Times'' described the financial community's response to "the most disastrous trading day in the stock market's history". Margin requirements were reduced to 25%, banking leaders expressed assurance of their support, and the sentiment on Wall Street was said to be "more cheerful" after earlier declines.<ref name=NYTimes_19291030>{{cite news |title=STOCKS COLLAPSE IN 16,410,030-SHARE DAY, BUT RALLY AT CLOSE CHEERS BROKERS; BANKERS OPTIMISTIC, TO CONTINUE AID |url=https://timesmachine.nytimes.com/timesmachine/1929/10/30/96008276.html |work=The New York Times |date=October 30, 1929}}</ref>]]
[[File:Harga Saham Wall Street 1929 - 1932 menjunam.png|thumb|upright=1.35|Overall [[Price Index]] {{Clarify|date=March 2020|reason=Index Not Specified}} on Wall Street from just before the crash in 1929 to 1932 when the price bottomed out]]
Selling intensified in mid-October. A sharp, unexpected decline in stock prices began on the afternoon of October 23, about an hour before trading ended for the day, leading to a 4.6% drop in total market value.<ref name=bierman>Bierman, Harold, Jr. [https://eh.net/encyclopedia/the-1929-stock-market-crash/ "The 1929 Stock Market Crash"], Economic History Association.</ref> That night, many investors panicked and resolved to sell their shares as soon as possible.<ref>Suddath, Claire. [https://time.com/archive/6913583/the-crash-of-1929/ "The Crash of 1929"], ''[[Time (magazine)|Time]]'', October 29, 2008.</ref><ref>[https://novelinvestor.com/timeline-of-the-1929-market-crash/ "Timeline of the 1929 Market Crash"], Novel Investor, October 25, 2023.</ref> On October 24, "'''Black Thursday'''", the market lost 11% of its value at the opening bell. In the first three minutes alone, nearly three million shares of stock, accounting for $2 million of wealth, changed hands.<ref>[https://courses.lumenlearning.com/suny-ushistory2os2xmaster/chapter/the-stock-market-crash-of-1929/ “Brother, Can You Spare a Dime? The Great Depression, 1929-1932”]. ''US History II (OS Collection)''. Lumen Learning. Dec 30, 2014.</ref> The huge volume meant that the report of prices on the [[ticker tape]] in brokerage offices around the nation was hours late, and so investors had no idea what most stocks were trading for.<ref>[https://www.newspapers.com/article/the-brooklyn-daily-times-rally-follows-r/170641088/ "Rally Follows Record Crash; Ticker 2 Hrs. Late"]. ''Times Union'' (Brooklyn, New York). October 24, 1929. p. 11.</ref> Several leading [[Wall Street]] [[banker]]s met to find a solution to the panic and chaos on the trading floor.<ref>Robert Goldston, ''The Great Depression'', pp. 39–40</ref> The meeting included [[Thomas W. Lamont]], acting head of [[J.P. Morgan & Co.|Morgan Bank]]; [[Albert Wiggin]], head of the [[Chase National Bank]]; and Charles E. Mitchell, president of the [[Citibank#History|National City Bank of New York]].<ref>[https://www.newspapers.com/article/the-brooklyn-daily-times-lamont-says-ban/170641109/ "Lamont Says Banks See No Cause For Alarm As Stock Crash Is Only Technical Break"]. ''Times Union'' (Brooklyn, New York). October 24, 1929. p. 1.</ref> They chose [[Richard Whitney (financier)|Richard Whitney]], vice president of the Exchange, to act on their behalf.<ref>{{Cite book |last=Leonard |first=Jonathan Norton |url=https://books.google.cat/books/about/Three_Years_Down.html?id=0KnnAAAAMAAJ&redir_esc=y |title=Three Years Down |date=1939 |publisher=Carrick & Evans, Incorporated |pages=71 |language=en}}</ref>

With the bankers' financial resources behind him, Whitney placed a bid to purchase 25,000 shares of [[U.S. Steel]] at $205 per share, a price well above the current market.<ref>[https://www.newspapers.com/article/the-ithaca-journal/133948335/ "Brief Review Transactions On Exchange"]. ''Associated Press''. The Ithaca Journal (Ithaca, New York). October 25, 1929. p. 14.</ref> As traders watched, Whitney then placed similar bids on other "[[blue chip (stock market)|blue chip]]" stocks. The tactic was similar to one that had ended the [[Panic of 1907]] and succeeded in halting the slide. The Dow Jones Industrial Average recovered, closing down only 6.38 points (2.09%) for the day.{{citation needed|date=October 2020}}

[[File:1930-67B.png|thumb|upright=1.35|The [[trading floor]] of the [[American Stock Exchange Building]] in 1930, six months after the Crash of 1929]]
On October 28, "'''Black Monday'''",<ref>[https://blogs.wsj.com/deals/2008/09/16/the-panic-of-2008-what-do-we-name-the-crisis/?mod=relevancy "The Panic of 2008? What Do We Name the Crisis?"] ''The Wall Street Journal''. September 16, 2008.</ref> more investors facing [[Margin (finance)#Margin call|margin calls]] decided to get out of the market, and the slide continued with a record loss in the Dow for the day of 38.33 points, or 12.82%.<ref name=":0">{{Cite news|title=The Great Crash of 1929, some key dates|url=https://financialpost.com/personal-finance/the-great-crash-of-1929-some-key-dates|access-date=July 22, 2020|website=Financial Post|date=October 24, 2011|language=en-CA|last1=Post|first1=Special to Financial}}</ref>

On October 29, 1929, "'''Black Tuesday'''" hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Around $14 billion of stock value was lost, wiping out thousands of investors. The panic selling reached its peak with some stocks having no buyers at any price.<ref>{{cite web |url=https://economictimes.indiatimes.com/industry/miscellaneous/market-crash-of-1929-some-facts-of-the-economic-downturn/articleshow/61166918.cms |title=Market crash of 1929: Some facts of the economic downturn |author=<!--ET Bureau--> |date=October 22, 2017 |work=Economic Times |publisher=Times Inernet |access-date=February 16, 2019}}</ref> The Dow lost an additional 30.57 points, or 11.73%, for a total drop of 68.90 points, or 23.05% in two days.<ref>{{cite web|url=https://www.nyse.com/about/history/timeline_trading.html|title=Timeline|work=NYSE Euronext|publisher=NYSE|access-date=October 1, 2008|url-status=dead|archive-url=https://web.archive.org/web/20100611125227/http://www.nyse.com/about/history/timeline_trading.html|archive-date=June 11, 2010}}</ref><ref name="ref1">{{cite web|url=https://www.npr.org/templates/story/story.php?storyId=94721470 |title=History's Advice During A Panic? Don't Panic|last=Weeks|first=Linton|website=NPR|date=September 17, 2008|access-date=October 1, 2008}}</ref><ref>{{cite web|url=https://www.pbs.org/wgbh/amex/crash/timeline/timeline2.html|title=The Crash of 1929|work=PBS|access-date=October 1, 2008|archive-date=September 23, 2008|archive-url=https://web.archive.org/web/20080923040829/http://www.pbs.org/wgbh/amex/crash/timeline/timeline2.html|url-status=dead}}</ref><ref>Salsman, Richard M. "The Cause and Consequences of the Great Depression, Part 1: What Made the Roaring '20s Roar", ''The Intellectual Activist'', {{ISSN|0730-2355}}, June 2004, p. 16.</ref>

On October 29, [[William C. Durant]] joined with members of the [[Rockefeller family]] and other financial giants to buy large quantities of stocks to demonstrate to the public their confidence in the market, but their efforts failed to stop the large decline in prices. The massive volume of stocks traded that day made the [[ticker tape|ticker]] continue to run until about 7:45&nbsp;p.m.{{citation needed|date=October 2020}}

{| class="wikitable" style="float:left; margin-right:10px;"
|+ Dow&nbsp;Jones&nbsp;Industrial&nbsp;Average on Black Monday and Black Tuesday<ref>{{cite news|url=https://online.wsj.com/mdc/public/page/2_3047-djia_alltime.html|access-date=May 11, 2011|title=Dow Jones Industrial Average All-Time Largest One Day Gains and Losses|work=[[The Wall Street Journal]]}}</ref>
|-
! Date!!Change!!% Change!!Close
|-
| October 28, 1929||−38.33||−12.82||260.64
|-
| October 29, 1929||−30.57||−11.73||230.07
|}

After a one-day recovery on October 30, when the Dow regained 28.40 points, or 12.34%, to close at 258.47, the market continued to fall, arriving at an interim bottom on November 13, 1929, with the Dow closing at 198.60. The market then recovered for several months, starting on November 14, with the Dow gaining 18.59 points to close at 217.28, and reaching a secondary closing peak ([[bear market]] [[Rally (stock market)|rally]]) of 294.07 on April 17, 1930. The Dow then embarked on another, much longer, steady slide from April 1930 to July 8, 1932, when it closed at 41.22, its lowest level of the 20th century, concluding an 89.2% loss for the index in less than three years.<ref>According to the Federal Reserve Bank of St. Louis Economic Data website, based on a monthly time series 1929 September – 1932 June, the Dow Jones Industrial Average lost 87.1% while the Cowles Commission and S&P's all stock index lost 85.0%: {{cite journal|url=https://fred.stlouisfed.org/graph/?g=qj2m |title=Dow-Jones Industrial Stock Price Index for United States |date=May 1933|website=Federal Reserve Economic Data |publisher=Federal Reserve Bank of St. Louis}}</ref><ref>{{cite journal|url=https://fred.stlouisfed.org/graph/?g=qj2l|title=Index of All Common Stock Prices, Cowles Commission and Standard and Poor's Corporation for United States|date=May 1933|website=Federal Reserve Economic Data |publisher=Federal Reserve Bank of St. Louis}}</ref>

Beginning on March 15, 1933, and continuing through the rest of the 1930s, the Dow began to slowly regain the ground it had lost. The largest percentage increases of the Dow Jones occurred during the early and mid-1930s. In late 1937, there was a sharp dip in the stock market, but prices held well above the 1932 lows. The Dow Jones did not return to its peak close of September 3, 1929, for 25 years, until November 23, 1954.<ref>[https://finance.yahoo.com/q/ta?s=%5EDJI&t=my&l=on&z=l&q=l&p=&a=&c= "DJIA 1929 to Present"], ''Yahoo! Finance''</ref><ref>"U.S. Industrial Stocks Pass 1929 Peak", ''The Times'', November 24, 1954, p. 12.</ref><ref>{{cite news|last1=Perrin|first1=Olivier|date=July 23, 2011|title=Les grands chocs du XXE siècle (3) – En 1929, six jours de panique à Wall Street annoncent le pire, à venir|trans-title=The Major Shocks of the 20th Century (3) – In 1929, six days of panic on Wall Street announce the worst, to come|url=https://www.letemps.ch/monde/1929-six-jours-panique-wall-street-annoncent-pire-venir|language=fr|issue=3|location=Geneva|work=[[Le Temps]]|issn=1423-3967|oclc=38739976|archive-url=https://web.archive.org/web/20190225223746/https://www.letemps.ch/monde/1929-six-jours-panique-wall-street-annoncent-pire-venir|archive-date=February 25, 2019|access-date=February 25, 2019}}</ref>