The 1929 Stock Market Crash Revisited
Stock prices are based on the perceived value of the company or investment they represent. DuPont fell from a summer high of 217 to 80, United States Steel from 261 to 166, Delaware and Hudson from 224 to 141, and Radio Corporation of America (RCA) common stock from 505 to 26. Political and financial leaders at first affected to treat the matter as a mere spasm in the market, vying with one another in reassuring statements.
Prices began rising in the months that followed and the stock markets recovered to their pre-invasion projected level of equilibrium following January 1991 when the U.S.-led coalition launched extension operations to expel Saddam Hussein’s Iraqi forces from Kuwait and to restore Kuwaiti sovereignty.
The coefficients on the other right-hand side variables indicate that women are significantly more pessimistic and more uncertain about stock returns; minorities are substantially more uncertain; older people are less optimistic and less uncertain; more educated people are less uncertain; and smarter people are more optimistic and less uncertain.
Academics see the Wall Street Crash of 1929 as part of a historical process that was a part of the new theories of boom and bust According to economists such as Joseph Schumpeter , Nikolai Kondratiev and Charles E. Mitchell , the crash was merely a historical event in the continuing process known as economic cycles The impact of the crash was merely to increase the speed at which the cycle proceeded to its next level.
The low-interest-rate environment did three things: it essentially took income” out of once-reliable, stable, fixed-income investments like Treasuries, bonds, and CDs; it made it easy to borrow money; and it also meant that the stock market was the only avenue for investors looking to make money.Tags: crash, market, revisited, stock