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W.H. Auden

2012-01-18T09:23:57Z

Ivar M.:

Wystan Hugh Auden (21 February 1907 – 29 September 1973) was an influential Anglo-American poet and a left-wing political writer. Two of his most famous and popular poems are: "September 1, 1939" and "Funeral Blues".

== Biography: ==

Wystan Hugh Auden was born on the 21 February 1907 in York, England. From 1915 to 1920 he was a boarder at St Edmund's Preparatory School, Hindhead, Surrey, where he met Christopher Isherwood, a fellow pupil who became a lifelong friend and, during the 1930s, a lover. It was during his stay at Gresham's School, Holt, from 1920 to 1925 that he started to write poetry for the first time. In 1925 he became engaged to a nurse in Birmingham. However, the engagement was only brief and very obscure. In the same year he accompanied his father to Europe. After his return Auden began his studies of Natural Sciences, Politics, Philosophy, Economics and English at Christchurch, Oxford, graduating with a Thrid Class degree. During his undergraduate studies he got into contact with various men who would become famous intellectuals later on in life such as Stephen Spender, Cecil Day Lewis, Louis MacNeice and Bill McElwee, whom he got very fond of.

In 1926 Auden was introduced to modernist writing by a fellow student. As a result, he became fascinated by Eliot's ''Waste Land'' as well as writings by Virginia Woolf and Gertrude Stein just to name a few. Auden's early poems were published privately by Stephen Spender in 1928, the very same year that Auden spent in Berlin together with Isherwood, where he encountered left-wing politics for the first time, a circumstance which influenced his political writing.

After his return Auden took to teaching in London. In 1930 T.S. Eliot initiated the publication of Auden's ''Paid on Both Sides'' and of ''Poems'' respectively. The former, a verse play, was regarded by Eliot as “a brilliant piece of work” with Auden being “the best poet that I have discovered in several years” (qtd. in Fuller, 13). The Orators: An English Study was published in the same year and can be seen as “a surrealist anatomy of a country in crisis” (Fuller, 51). It was the latter that boosted Auden's early reputation with John Hayward writing in the ''Criterion'': “I have no doubt that it is the most valuable contribution to English poetry since The Waste Land” (Fuller, 51). In 1935 Auden married Erika Mann, an anti-Nazi and lesbian daughter of Thomas Mann, in order to provide her with a passport to leave Germany. Two years later, Auden spent three months in Valencia, Spain (from January till March 1937), where he broadcast for the embattled Republic.

In 1939 he moved to the United States together with Isherwood where he worked as script-writer for Metro-Goldwyn-Mayer in Hollywood. His decision to leave Britain behind was partly a result of the uneasiness he felt over being “the cultural leader of young [leftist] English partisans” (Davenport-Hines in: Smith, 19). A year later he again started teaching; this time at the New School for Social Research, New York. In the subsequent years Auden taught at many other colleges and universities including Michigan University (1941), Bennington College (1946), Barnard College (1947) and Oxford University (1956) among others. In 1946 he finally became a citizen of the US. Wystan Hugh Auden died of a heart attack on 29 September 1973 in a hotel in Vienna.

== Style: ==

In his works Auden drew ideas from other poets as well as from novelists, historians, theologians, psychologists, philosophers, political scientists and anthropologists. Moreover, he was highly influenced by psychoanalytical and Marxist theories. Yet, Auden's devotion to Marxism “was never wholehearted and frequently seemed forced and false” (Wright, 58).
During his early years as a poet and writer Auden was numbered among the so-called 'pylon poets', a group of mostly young intellectuals who celebrated new technology. However, Auden was also profoundly committed to political writing with many critical or terrifying concerns about political injustice and human pain being spoken about in several of his works. Consequently, he soon became a spokesperson for many thinking dissenters.

== Published works (incomplete list): ==

Poems (London, 1930; second edn., seven poems substituted, London, 1933; includes poems and Paid on Both Sides: A Charade) (dedicated to Christopher Isherwood).

The Orators: An English Study (London, 1932, verse and prose; slightly revised edn., London, 1934; revised edn. with new preface, London, 1966; New York 1967) (dedicated to Stephen Spender).

The Dance of Death (London, 1933, play) (dedicated to Robert Medley and Rupert Doone).

Poems (New York, 1934; contains Poems [1933 edition], The Orators [1932 edition], and The Dance of Death).

The Dog Beneath the Skin (London, New York, 1935; play, with Christopher Isherwood) (dedicated to Robert Moody).

The Ascent of F6 (London, 1936; 2nd edn., 1937; New York, 1937; play, with Christopher Isherwood) (dedicated to John Bicknell Auden).

Look, Stranger! (London, 1936, poems; US edn., On This Island, New York, 1937) (dedicated to Erika Mann)

Letters from Iceland (London, New York, 1937; verse and prose, with Louis MacNeice) (dedicated to George Augustus Auden).

On the Frontier (London, 1938; New York 1939; play, with Christopher Isherwood) (dedicated to Benjamin Britten).

Journey to a War (London, New York, 1939; verse and prose, with Christopher Isherwood) (dedicated to E. M. Forster).

Another Time (London, New York 1940; poetry) (dedicated to Chester Kallman).

The Double Man (New York, 1941, poems; UK edn., New Year Letter, London, 1941) (Dedicated to Elizabeth Mayer).

For the Time Being (New York, 1944; London, 1945; two long poems: "The Sea and the Mirror: A Commentary on Shakespeare's The Tempest", dedicated to James and Tania Stern, and "For the Time Being: A Christmas Oratorio", in memoriam Constance Rosalie Auden [Auden's mother]).

The Collected Poetry of W. H. Auden (New York, 1945; includes new poems) (dedicated to Christopher Isherwood and Chester Kallman).

The Age of Anxiety: A Baroque Eclogue (New York, 1947; London, 1948; verse; won the 1948 Pulitzer Prize for Poetry) (dedicated to John Betjeman).

Collected Shorter Poems, 1930–1944 (London, 1950; similar to 1945 Collected Poetry) (dedicated to Christopher Isherwood and Chester Kallman).

The Enchafèd Flood (New York, 1950; London, 1951; prose) (dedicated to Alan Ansen).

Nones (New York, 1951; London, 1952; poems) (dedicated to Reinhold and Ursula Niebuhr)

The Shield of Achilles (New York, London, 1955; poems; won the 1956 National Book Award for Poetry) (dedicated to Lincoln and Fidelma Kirstein).

Homage to Clio (New York, London, 1960; poems) (dedicated to E. R. and A. E. Dodds).

The Dyer's Hand (New York, 1962; London, 1963; essays) (dedicated to Nevill Coghill).

About the House (New York, London, 1965; poems) (dedicated to Edmund and Elena Wilson).

Collected Shorter Poems 1927–1957 (London, 1966; New York, 1967) (dedicated to Christopher Isherwood and Chester Kallman).

Collected Longer Poems (London, 1968; New York, 1969).

Secondary Worlds (London, New York, 1969; prose) (dedicated to Valerie Eliot).

City Without Walls and Other Poems (London, New York, 1969) (dedicated to Peter Heyworth).

A Certain World: A Commonplace Book (New York, London, 1970; quotations with commentary) (dedicated to Geoffrey Gorer).

Epistle to a Godson and Other Poems (London, New York, 1972) (dedicated to Orlan Fox).

Forewords and Afterwords (New York, London, 1973; essays) (dedicated to Hannah Arendt).

Thank You, Fog: Last Poems (London, New York, 1974) (dedicated to Michael and Marny Yates).

== Sources: ==

Fuller, John. A Reader's Guide to W.H. Auden. Thames and Hudson: London, 1976.

Smith, Stan (ed.). The Cambridge Companion to W.H. Auden. Cambridge: CUP, 2004.

Wright, George T. W.H. Auden. Twayne Publishers Inc.: New York, 1969.

W.H. Auden

2012-01-18T09:21:40Z

Ivar M.:

Wystan Hugh Auden (21 February 1907 – 29 September 1973) was an influential Anglo-American poet and a left-wing political writer. Two of his most famous and popular poems are: "September 1, 1939" and "Funeral Blues".

== Biography: ==

Wystan Hugh Auden was born on the 21 February 1907 in York, England. From 1915 to 1920 he was a boarder at St Edmund's Preparatory School, Hindhead, Surrey, where he met Christopher Isherwood, a fellow pupil who became a lifelong friend and, during the 1930s, a lover. It was during his stay at Gresham's School, Holt, from 1920 to 1925 that he started to write poetry for the first time. In 1925 he became engaged to a nurse in Birmingham. However, the engagement was only brief and very obscure. In the same year he accompanied his father to Europe. After his return Auden began his studies of Natural Sciences, Politics, Philosophy, Economics and English at Christchurch, Oxford, graduating with a Thrid Class degree. During his undergraduate studies he got into contact with various men who would become famous intellectuals later on in life such as Stephen Spender, Cecil Day Lewis, Louis MacNeice and Bill McElwee, whom he got very fond of.

In 1926 Auden was introduced to modernist writing by a fellow student. As a result, he became fascinated by Eliot's Waste Land as well as writings by Virginia Woolf and Gertrude Stein just to name a few. Auden's early poems were published privately by Stephen Spender in 1928, the very same year that Auden spent in Berlin together with Isherwood, where he encountered left-wing politics for the first time, a circumstance which influenced his political writing.

After his return Auden took to teaching in London. In 1930 T.S. Eliot initiated the publication of Auden's Paid on Both Sides and of Poems respectively. The former, a verse play, was regarded by Eliot as “a brilliant piece of work” with Auden being“the best poet that I have discovered in several years” (qtd. in Fuller, 13). The Orators: An English Study was published in the same year and can be seen as “a surrealist anatomy of a country in crisis” (Fuller, 51). It was the latter that boosted Auden's early reputation with John Hayward writing in the Criterion: “I have no doubt that it is the most valuable contribution to English poetry since The Waste Land” (Fuller, 51). In 1935 Auden married Erika Mann, an anti-Nazi and lesbian daughter of Thomas Mann, in order to provide her with a passport to leave Germany. Two years later, Auden spent three months in Valencia, Spain (from January till March 1937), where he broadcast for the embattled Republic.

In 1939 he moved to the United States together with Isherwood where he worked as script-writer for Metro-Goldwyn-Mayer in Hollywood. His decision to leave Britain behind was partly a result of the uneasiness he felt over being “the cultural leader of young [leftist] English partisans” (Davenport-Hines in: Smith, 19). A year later he again started teaching; this time at the New School for Social Research, New York. In the subsequent years Auden taught at many other colleges and universities including Michigan University (1941), Bennington College (1946), Barnard College (1947) and Oxford University (1956) among others. In 1946 he finally became a citizen of the US. Wystan Hugh Auden died of a heart attack on 29 September 1973 in a hotel in Vienna.

== Style: ==

In his works Auden drew ideas from other poets as well as from novelists, historians, theologians, psychologists, philosophers, political scientists and anthropologists. Moreover, he was highly influenced by psychoanalytical and Marxist theories. Yet, Auden's devotion to Marxism “was never wholehearted and frequently seemed forced and false” (Wright, 58).
During his early years as a poet and writer Auden was numbered among the so-called 'pylon poets', a group of mostly young intellectuals who celebrated new technology. However, Auden was also profoundly committed to political writing with many critical or terrifying concerns about political injustice and human pain being spoken about in several of his works. Consequently, he soon became a spokesperson for many thinking dissenters.

== Published works (incomplete list): ==

Poems (London, 1930; second edn., seven poems substituted, London, 1933; includes poems and Paid on Both Sides: A Charade) (dedicated to Christopher Isherwood).

The Orators: An English Study (London, 1932, verse and prose; slightly revised edn., London, 1934; revised edn. with new preface, London, 1966; New York 1967) (dedicated to Stephen Spender).

The Dance of Death (London, 1933, play) (dedicated to Robert Medley and Rupert Doone).

Poems (New York, 1934; contains Poems [1933 edition], The Orators [1932 edition], and The Dance of Death).

The Dog Beneath the Skin (London, New York, 1935; play, with Christopher Isherwood) (dedicated to Robert Moody).

The Ascent of F6 (London, 1936; 2nd edn., 1937; New York, 1937; play, with Christopher Isherwood) (dedicated to John Bicknell Auden).

Look, Stranger! (London, 1936, poems; US edn., On This Island, New York, 1937) (dedicated to Erika Mann)

Letters from Iceland (London, New York, 1937; verse and prose, with Louis MacNeice) (dedicated to George Augustus Auden).

On the Frontier (London, 1938; New York 1939; play, with Christopher Isherwood) (dedicated to Benjamin Britten).

Journey to a War (London, New York, 1939; verse and prose, with Christopher Isherwood) (dedicated to E. M. Forster).

Another Time (London, New York 1940; poetry) (dedicated to Chester Kallman).

The Double Man (New York, 1941, poems; UK edn., New Year Letter, London, 1941) (Dedicated to Elizabeth Mayer).

For the Time Being (New York, 1944; London, 1945; two long poems: "The Sea and the Mirror: A Commentary on Shakespeare's The Tempest", dedicated to James and Tania Stern, and "For the Time Being: A Christmas Oratorio", in memoriam Constance Rosalie Auden [Auden's mother]).

The Collected Poetry of W. H. Auden (New York, 1945; includes new poems) (dedicated to Christopher Isherwood and Chester Kallman).

The Age of Anxiety: A Baroque Eclogue (New York, 1947; London, 1948; verse; won the 1948 Pulitzer Prize for Poetry) (dedicated to John Betjeman).

Collected Shorter Poems, 1930–1944 (London, 1950; similar to 1945 Collected Poetry) (dedicated to Christopher Isherwood and Chester Kallman).

The Enchafèd Flood (New York, 1950; London, 1951; prose) (dedicated to Alan Ansen).

Nones (New York, 1951; London, 1952; poems) (dedicated to Reinhold and Ursula Niebuhr)

The Shield of Achilles (New York, London, 1955; poems; won the 1956 National Book Award for Poetry) (dedicated to Lincoln and Fidelma Kirstein).

Homage to Clio (New York, London, 1960; poems) (dedicated to E. R. and A. E. Dodds).

The Dyer's Hand (New York, 1962; London, 1963; essays) (dedicated to Nevill Coghill).

About the House (New York, London, 1965; poems) (dedicated to Edmund and Elena Wilson).

Collected Shorter Poems 1927–1957 (London, 1966; New York, 1967) (dedicated to Christopher Isherwood and Chester Kallman).

Collected Longer Poems (London, 1968; New York, 1969).

Secondary Worlds (London, New York, 1969; prose) (dedicated to Valerie Eliot).

City Without Walls and Other Poems (London, New York, 1969) (dedicated to Peter Heyworth).

A Certain World: A Commonplace Book (New York, London, 1970; quotations with commentary) (dedicated to Geoffrey Gorer).

Epistle to a Godson and Other Poems (London, New York, 1972) (dedicated to Orlan Fox).

Forewords and Afterwords (New York, London, 1973; essays) (dedicated to Hannah Arendt).

Thank You, Fog: Last Poems (London, New York, 1974) (dedicated to Michael and Marny Yates).

== Sources: ==

Fuller, John. A Reader's Guide to W.H. Auden. Thames and Hudson: London, 1976.

Smith, Stan (ed.). The Cambridge Companion to W.H. Auden. Cambridge: CUP, 2004.

Wright, George T. W.H. Auden. Twayne Publishers Inc.: New York, 1969.

W.H. Auden

2012-01-17T11:39:10Z

Ivar M.:

Wystan Hugh Auden (21 February 1907 – 29 September 1973) was an influential Anglo-American poet and a left-wing political writer. Two of his most famous and popular poems are: "September 1, 1939" and "Funeral Blues".

== Biography: ==

Wystan Hugh Auden was born on the 21 February 1907 in York, England. From 1915 to 1920 he was a boarder at St Edmund's Preparatory School, Hindhead, Surrey, where he met Christopher Isherwood, a fellow pupil who became a lifelong friend and, during the 1930s, a lover. It was during his stay at Gresham's School, Holt, from 1920 to 1925 that he started to write poetry for the first time. In 1925 he became engaged to a nurse in Birmingham. However, the engagement was only brief and very obscure. In the same year he accompanied his father to Europe. After his return Auden began his studies of Natural Sciences, Politics, Philosophy, Economics and English at Christchurch, Oxford, graduating with a Thrid Class degree. During his undergraduate studies he got into contact with various men who would become famous intellectuals later on in life such as Stephen Spender, Cecil Day Lewis, Louis MacNeice and Bill McElwee, whom he got very fond of.

In 1926 Auden was introduced to modernist writing by a fellow student. As a result, he became fascinated by Eliot's Waste Land as well as writings by Virginia Woolf and Gertrude Stein just to name a few. Auden's early poems were published privately by Stephen Spender in 1928, the very same year that Auden spent in Berlin together with Isherwood, where he encountered left-wing politics for the first time, a circumstance which influenced his political writing.

After his return Auden took to teaching in London. In 1930 T.S. Eliot initiated the publication of Auden's Paid on Both Sides and of Poems respectively. The former, a verse play, was regarded by Eliot as “a brilliant piece of work” with Auden being“the best poet that I have discovered in several years” (qtd. in Fuller, 13). The Orators: An English Study was published in the same year and can be seen as “a surrealist anatomy of a country in crisis” (Fuller, 51). It was the latter that boosted Auden's early reputation with John Hayward writing in the Criterion: “I have no doubt that it is the most valuable contribution to English poetry since The Waste Land” (Fuller, 51). In 1935 Auden married Erika Mann, an anti-Nazi and lesbian daughter of Thomas Mann, in order to provide her with a passport to leave Germany. Two years later, Auden spent three months in Valencia, Spain (from January till March 1937), where he broadcast for the embattled Republic.

In 1939 he moved to the United States together with Isherwood where he worked as script-writer for Metro-Goldwyn-Mayer in Hollywood. His decision to leave Britain behind was partly a result of the uneasiness he felt over being “the cultural leader of young [leftist] English partisans” (Davenport-Hines in: Smith, 19). A year later he again started teaching; this time at the New School for Social Research, New York. In the subsequent years Auden taught at many other colleges and universities including Michigan University (1941), Bennington College (1946), Barnard College (1947) and Oxford University (1956) among others. In 1946 he finally became a citizen of the US. Wystan Hugh Auden died of a heart attack on 29 September 1973 in a hotel in Vienna.

== Style: ==

In his works Auden drew ideas from other poets as well as from novelists, historians, theologians, psychologists, philosophers, political scientists and anthropologists. Moreover, he was highly influenced by psychoanalytical and Marxist theories. Yet, Auden's devotion to Marxism “was never wholehearted and frequently seemed forced and false” (Wright, 58).
During his early years as a poet and writer Auden was numbered among the so-called 'pylon poets', a group of mostly young intellectuals who celebrated new technology. However, Auden was also profoundly committed to political writing with many critical or terrifying concerns about political injustice and human pain being spoken about in several of his works. Consequently, he soon became a spokesperson for many thinking dissenters.

== Published works (incomplete list): ==

Poems (London, 1930; second edn., seven poems substituted, London, 1933; includes poems and Paid on Both Sides: A Charade[41]) (dedicated to Christopher Isherwood).

The Orators: An English Study (London, 1932, verse and prose; slightly revised edn., London, 1934; revised edn. with new preface, London, 1966; New York 1967) (dedicated to Stephen Spender).

The Dance of Death (London, 1933, play)[41] (dedicated to Robert Medley and Rupert Doone).

Poems (New York, 1934; contains Poems [1933 edition], The Orators [1932 edition], and The Dance of Death).

The Dog Beneath the Skin (London, New York, 1935; play, with Christopher Isherwood)[41] (dedicated to Robert Moody).

The Ascent of F6 (London, 1936; 2nd edn., 1937; New York, 1937; play, with Christopher Isherwood)[41] (dedicated to John Bicknell Auden).

Look, Stranger! (London, 1936, poems; US edn., On This Island, New York, 1937) (dedicated to Erika Mann)

Letters from Iceland (London, New York, 1937; verse and prose, with Louis MacNeice)[42] (dedicated to George Augustus Auden).

On the Frontier (London, 1938; New York 1939; play, with Christopher Isherwood)[41] (dedicated to Benjamin Britten).

Journey to a War (London, New York, 1939; verse and prose, with Christopher Isherwood)[42] (dedicated to E. M. Forster).

Another Time (London, New York 1940; poetry) (dedicated to Chester Kallman).

The Double Man (New York, 1941, poems; UK edn., New Year Letter, London, 1941) (Dedicated to Elizabeth Mayer).

For the Time Being (New York, 1944; London, 1945; two long poems: "The Sea and the Mirror: A Commentary on Shakespeare's The Tempest", dedicated to James and Tania Stern, and "For the Time Being: A Christmas Oratorio", in memoriam Constance Rosalie Auden [Auden's mother]).

The Collected Poetry of W. H. Auden (New York, 1945; includes new poems) (dedicated to Christopher Isherwood and Chester Kallman).

The Age of Anxiety: A Baroque Eclogue (New York, 1947; London, 1948; verse; won the 1948 Pulitzer Prize for Poetry) (dedicated to John Betjeman).

Collected Shorter Poems, 1930–1944 (London, 1950; similar to 1945 Collected Poetry) (dedicated to Christopher Isherwood and Chester Kallman).

The Enchafèd Flood (New York, 1950; London, 1951; prose) (dedicated to Alan Ansen).[51]

Nones (New York, 1951; London, 1952; poems) (dedicated to Reinhold and Ursula Niebuhr)

The Shield of Achilles (New York, London, 1955; poems; won the 1956 National Book Award for Poetry) (dedicated to Lincoln and Fidelma Kirstein).

Homage to Clio (New York, London, 1960; poems) (dedicated to E. R. and A. E. Dodds).

The Dyer's Hand (New York, 1962; London, 1963; essays) (dedicated to Nevill Coghill).[52]

About the House (New York, London, 1965; poems) (dedicated to Edmund and Elena Wilson).

Collected Shorter Poems 1927–1957 (London, 1966; New York, 1967) (dedicated to Christopher Isherwood and Chester Kallman).

Collected Longer Poems (London, 1968; New York, 1969).

Secondary Worlds (London, New York, 1969; prose) (dedicated to Valerie Eliot).

City Without Walls and Other Poems (London, New York, 1969) (dedicated to Peter Heyworth).

A Certain World: A Commonplace Book (New York, London, 1970; quotations with commentary) (dedicated to Geoffrey Gorer).

Epistle to a Godson and Other Poems (London, New York, 1972) (dedicated to Orlan Fox).

Forewords and Afterwords (New York, London, 1973; essays) (dedicated to Hannah Arendt).

Thank You, Fog: Last Poems (London, New York, 1974) (dedicated to Michael and Marny Yates).

== Sources: ==

Fuller, John. A Reader's Guide to W.H. Auden. Thames and Hudson: London, 1976.

Smith, Stan (ed.). The Cambridge Companion to W.H. Auden. Cambridge: CUP, 2004.

Wright, George T. W.H. Auden. Twayne Publishers Inc.: New York, 1969.

W.H. Auden

2012-01-15T19:15:41Z

Ivar M.: Created page with 'Wystan Hugh Auden (21 February 1907 – 29 September 1973) was an influential Anglo-American poet and a left-wing political writer. Two of his most famous and popular poems are: …'

Wall street crash of 1929

2011-12-06T20:16:49Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a share of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929 (18)

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around $3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein, 219).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== Repercussions ==

Notwithstanding the seriousness of the crisis, the ''Times'' published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein, 231). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the ''Times'', some economists like Alexander Noyes immediately recognized the danger of the crash saying: "A Stock Exchange panic foreshadows business depression, unemployment and hard times” (qtd. in Klein, 234). As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Brenda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-06T20:16:09Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a share of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929 (18)

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around $3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein, 219).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== Repercussions ==

Notwithstanding the seriousness of the crisis, the ''Times'' published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein, 231). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the ''Times'', some economists like Alexander Noyes immediately recognized the danger of the crash saying: "A Stock Exchange panic foreshadows business depression, unemployment and hard times” (qtd. in Klein, 234). As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Branda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-06T13:58:23Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== 1. The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== 2. Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a share of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929 (18)

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== 3. „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around $3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein, 219).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== 4. Repercussions ==

Notwithstanding the seriousness of the crisis, the ''Times'' published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein, 231). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the ''Times'', some economists like Alexander Noyes immediately recognized the danger of the crash saying: "A Stock Exchange panic foreshadows business depression, unemployment and hard times” (qtd. in Klein, 234). As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Branda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-06T13:57:25Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== 1. The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== 2. Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a share of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929.

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== 3. „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around $3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein, 219).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== 4. Repercussions ==

Notwithstanding the seriousness of the crisis, the ''Times'' published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein, 231). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the ''Times'', some economists like Alexander Noyes immediately recognized the danger of the crash saying: "A Stock Exchange panic foreshadows business depression, unemployment and hard times” (qtd. in Klein, 234). As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Branda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-06T13:52:56Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== 1. The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== 2. Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a share of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929.

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== 3. „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around $3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== 4. Repercussions ==

Notwithstanding the seriousness of the crisis, the Times published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the Times, some economists like Alexander Noyes immediately recognized the danger of the crash saying:” A Stock Exchange panic foreshadows business depression, unemployment and hard times”. As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Branda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-06T13:48:56Z

Ivar M.:

The 29th of October 1929, often referred to as “Black Tuesday”, was the day of the Great Crash of the New York Stock Exchange (NYSE). It was one of the most serious stock market crashes in the history of the USA and is seen by many experts as the beginning of a severe world-wide economic depression which came to be known as the “Great Depression” that affected all Western industrialized countries.

== 1. The Western World Before the Crash ==

The Great Crash of 1929 marked the end of the so-called carefree „Roaring Twenties“, a time of relative prosperity and economic well-being. The atrocities of World War I were a thing of the past and the future seemed promising. The production of luxury goods reached a new peak as more and more people started buying “must-have” items such as refrigerators, radios and cars not by cash but on credit. It was due to a change in the cultural mind-set that the traditional value of canniness gave way to this new and “easy way to buy”. Banks on the other hand encouraged this trend and were now keen to lend money to all kinds of people, whether it be a man of business or a mere blue-collar worker. By 1929, around 15 percent of all purchases were bought on credit. Furthermore, borrowed money was progressively used to buy stocks, all of which had increased in value throughout the 1920s. As such they were seen as a sure way to earn money the easy way: buy stocks on the stock market when the prices are low and sell them to others when the prices have gone up. Consequently, using borrowed money to buy stocks – also known as buying on margin – became a wide-spread practice for many common Americans. But in the end it were the Banks themselves which invested substantial amounts of money in the stock market, e.g. in companies such as General Motors, DuPont and RCA (Radio Corporation of America).

== 2. Prelude ==

When the “Roaring Twenties” drew to a close signs of an economic crisis became evident: a decline in the textile, coal and farming industries as well as in business in general had already set in. Moreover, unemployment had grown throughout 1928 and construction of new homes – a warning sign for many experts – declined in 1927 and along with it the need for new consumer goods. New production methods and more effective machinery further exacerbated this situation since fewer factory workers were needed to produce the same amount of products: a vicious circle.
But the worst problem for the stock market by far was over-speculation, i.e. when speculators keep on borrowing money and buying stocks, thereby driving stock prices higher and higher. As a result, prices for many stocks were soon well above what companies were actually worth: the paper value did not match the true value of the company a share represented. Brenda Lange has highlighted the ensuing problem accurately:

Unless that true value “catches up” with the stock price, the price will begin to fall. When a shore of stock loses value, some people sell their shares, afraid they
will lose everything if they do not get rid of the devalued stock. If too many sell too quickly, panic can set in, with investors believing they won't get back at
least what they paid for the share. This is what happened in October 1929.

The recession was in full swing by mid-October. On 24th of October (“Black Thursday”) the industrial average dropped to previous June's level with many stocks losing the value they had acquired during the last four months. Therefore, many investors started to panic. As a consequence, 12,894,650 shares were traded by brokers on Black Thursday, thereby establishing a new record which by far exceeded the previous one (12th March 1928: 3,875,910 shares traded). Due to international trade relations the Canadian, London and other markets were affected by this first selling wave as well with prices falling as never before.

== 3. „Black Tuesday“ ==

The selling frenzy which began on Black Thursday continued and reached a new height on the 29th of October – Black Tuesday. It was the day of the big stockholders and investment trusts selling as much as possible, whereas the small investors had already lost everything the week before. Another record was established: 16,410,030 shares were traded on this day with a total loss in value of approximately 14 billion dollars (the 1929 budget of the U.S. Federal government was around §3 billion); a very drastic change indeed with far-reaching consequences even for the London Stock exchange which dissolved into pandemonium after the second wave of violent selling.
Few contemporaries realized the seriousness of the crash. Those who did noted its uniqueness: “Panics of the past were brought about by something fundamentally wrong with finance or business, crop failures, earthquakes, strained international relations, prohibitive rates for money, inflated inventories and the like. The recent break was due to the position of the market itself” (qtd. in Klein).
Since banks did take a big part in investing money in stocks, their customers began to empty their bank accounts as soon as they had heard about the falling prices and the subsequent selling frenzy at the NYSE. Most were afraid that there would not be any cash for them left if they wanted to withdraw their money. The effect was devastating: many banks went out of business altogether.

== 4. Repercussions ==

Notwithstanding the seriousness of the crisis, the Times published an article saying: “the longer result of it [i.e. crash] will be restoration of the community's mental health and vision” (qtd. in Klein). However, the Wall Street Crash of 1929 was a heavy blow the U.S. credit system that had played an active part in supporting the country's economic development. Along with further economic decline came rising unemployment rates (up to 25%) and the cutting of wages (up to 50%). Since so many ordinary families had spent all their savings and all their borrowed money on stock speculation, they had no means of paying rent or feeding themselves once unemployment struck. Especially the middle class was affected. Homelessness and disillusionment were the consequence. In contrast to the Times, some economists like Alexander Noyes immediately recognized the danger of the crash saying:” A Stock Exchange panic foreshadows business depression, unemployment and hard times”. As time went by and the Great Depression began to take shape, Noyes' notion prevailed.

Sources:

Klein, Maury. ''Rainbow's End. The Crash of 1929''. Oxford: Oxford University Press, 2001.

Lange, Branda. ''The Stock Market Crash of 1929. The End of Prosperity''. New York: Chelsea House Publishing, 2007.

Wall street crash of 1929

2011-12-01T11:51:11Z

Ivar M.: Created page with '== Wall Street Crash of 1929 == ---- The Wall Street Crash of October 1929 (24th of October; "Black Thursday") was one of the most serious stock market crashes in the history of…'

== Wall Street Crash of 1929 ==

----
The Wall Street Crash of October 1929 (24th of October; "Black Thursday") was one of the most serious stock market crashes in the history of the United States. It led to a severe worldwide economic depression ("Great Depression") which affected all Western industrialized countries.