Black Thursday: The Start Of The Great Depression

Words: 895

Pages: 4

Open Document

On October 24, 1929, a day is known as “Black Thursday” sparked the beginning of the great depression that lasted till 1939. During this ten-year period, Benjamin Graham declared “In the short run, the market is a voting machine, but in the long run it is a weighing machine” is a cautionary tale of risks following market trends.
Over the last thirty years three major crashes took place; Black Monday (1987), Dotcom Crash (2000-2002) and the Global Financial Crisis (2007-2008), which according to some economist is considered as the worst since the Great Depression. After these frightening deterioration, it was essential to reflect upon how and why these events occurred. The quote is brilliant regardless of its originality and it is just as significant today as it was back then. The market prices represent a short-term fame and similar contest to the voting in a political election, but over the long run, market prices tend to increase in value due to the return on inflation, economic growth, and capital used on a weighing machine. The stock market experiences depletion due to a change in prices of …show more content…
How the bubble formed before shifting in the opposite direction always troubled Graham. The quote describes how the market situation trends smoothly. The market behaves like an immense contest during the short term as prices change rapidly based on environmental factors, while the underlying value remains predominately unaffected. People can trend, and there are several ways the stock can be manipulated in the short term. Traders also move in and out of the market based on activities of a company. Some short-term tactics used include high volume shorting, churning (buying and selling at the same price), painting the tape (creating hype or rumours) and similar variations. This behaviour can influence a person’s feeling towards a stock price and they may vote based on this

Similarities Between The 1920s And 1930s

people in the 1930’s. People spent a lot of money during the 1920’s and were in debt due to borrowing money from banks. This put a large amount of pressure on the banks that would start to fail in the late 1920’s. The 1920s was a time of new inventions and growth, but it came to an end with the start of the Great Depression and the stock market crash in the late 1920’s. Throughout the 1920’s, there were many changes socially, economically, and politically. Socially, many people got out and did activities…

Words 989 - Pages 4

Great Depression Dbq

The Great Depression The Great Depression was one of the hardest times for Americans and the American economy. The cause to this Depression was various reasons. One of the main and more well-known reasons is the Stock Crash of 1929. According to History.com the Stock Crash of 1929 was when the spender’s purchasing went down so unsold items went up. At the same time this was happening the stocks were going up and, “had reached levels that could not be justified by anticipated future earnings.” When…

Words 1414 - Pages 6

Causes Of The Depression

Chapter 21 Section 1: Causes of the Depression SPECULATION- Too much money was being poured into stock speculation BLACK TUESDAY- They day the stock market crashed GREAT DEPRESSION- A period lasting from 1929-1941 in which the economy faltered and unemployment soared HAWLEY-SMOOT TARIFF- Raised prices on foreign imports Summary Republican leaders exuded confidence about both their part and their country. The Roaring Twenties had been a Republican decade. Once in office, Presidents watched…

Words 1616 - Pages 7

The Great Depression & The New Era And The New Deal

Ch.24: The Great Depression & the New Era & the New Deal -In 1933 after having the worse economic depression in US history, the American people were gripped by fear for their very survival. -depression of 1930s lasted longer and caused more business failures. -affected both middle and working classes. -before it was over, Hoover & Roosevelt would devote 12yrs seeking the elusive path toward recovery. CAUSES AND EFFECTS OF THE DEPRESSION (1929-1933) -business boom 1920s collapse…

Words 1590 - Pages 7

French Connections

On August 13th, 2009 on a Thursday afternoon in Santa Monica, California, a photo was captured by Reed Saxon of French Connections store window. This photograph was published online in the newspaper showing examples of stores that suffered during the financial crisis. Viewers look…

Words 1079 - Pages 5

Comparing Recession to Great Depression Essay

Goslin – Research Paper. The Great Depression was a harsh global economic depression in the decade prior World War II. The Great Depression, while it happened far before the “Great Recession” of 2008, it can be greatly compared. During the Great Depression, all income, tax revenue, and prices dropped. International trade decreased by more than 50%, and U.S. unemployment climbed to just above 25%. Industrial cities like Detroit and Pittsburgh took the heaviest hits. While the recession of 2008…

Words 3158 - Pages 13

World War Ii and Brave New World Essay

March 10, 2014 HIS 236 Important Class Info -ex cred opportunity (10%) -Thursday afternoon, talk on resistance theory and modern democracy -student evaluations are up The Brave New World -how are Robinson Crusoe and BNW similar? -alternative imaginary world -Huxley: dystopian -issue of technology and dehumanization…alienation -most or all of our human relationships are mediated through technology, which alienates us -innovation of loneliness video -“I share, therefore I am” -relationships are based…

Words 1124 - Pages 5

Misconceptions Of Poverty In America

It is likely without the Great Depression, there would not be as many programs and agencies to assist those in poverty. The COVID-19 pandemic had a significant impact on individuals in poverty. America shut down so the virus would not spread. Only people who could work during the pandemic…

Words 2710 - Pages 11

Essay on The dream

the American dream has been around for a long time and has influenced major and minor lifechanging decisions that Americans make. The seeds of the current expectations about the American dream were planted in one of the biggest events that occurred in America in the 20th century, the Great Depression. Also, During World War II, companies ran ads promising American consumers a better life after the war. The Dream was used as a means of propaganda. With this being the case, everyone had one dream and one goal in life which was to achieve the American dream…

Words 1613 - Pages 7

Sophie: Of Mice and Men and Curley Essay

character? Social, historical context of the novel: Great Depression etc Structure On a simple level, what happens in the story How the characters and their relationships change How our understanding of the themes and setting change over the course of the book. Key events in the story which mark the different changes of the characters. SHORT SUMMARY OF THE NOVELLA The novel, which takes place during the Great Depression, begins beside the Salinas River near Soledad, California…

Words 4377 - Pages 18