Free The Stock Market Crash Of 1929 Research Paper Example
The 1929 stock market raised eyebrows across the globe. Indeed companies were in need of survival to create growths that they needed to meet. Though exaggerations came up from newspapers, companies were on the verge of collapse even when bankers and brokers were on bargain hunting. This article paper review will provide an evaluation of the causes and immediate effects of the 1929 trauma that caused the stock market break-down.
Klein in his article believes that, the crash of this stock market has mademany scholars ask many desperate questions regarding the causes of this crash, the effects and solutions that can prevent the possibility of such catastrophe in future. To majority, it is believed that a trigger of the crash may be the sharp declines of various companies on the market. This trend has made them to generate many losses while chasing away potential customers. The agricultural sector and banking had major problem as many workers lost jobs leading to low wages and excess loans that could not be liquidated. Though other causes are known, no better explanations were stated as to why this crash happened.
Klein continues to spell out that, drastic declines in the stock market can truly cause a crash. While closely monitoring incidents, Klein believes on the market will give the prospects of the company’s gains and losses. When companies ignore the movements of the stock market, it will then happen in this current era as it happened in 1929. During falls of a stock, a company should consider whether it is supposed to continue selling or not, emotional reactions will make the company lose objectively during those times.
In his paper Klein believes that, as year’s passes, in 1979, Max Morgan and Thomas provided a perfect history on the incident making them so ambitious and informative. Other documentation came up with no definite information was brought up giving a different analysis of each year of the publication as the authors of the crash. According to the article, many authors have written about the crash but no information on the precise cause discussed. Prices fell by a 10% margin giving a visible effect on unemployment, slow economic growth and depressions.However, the article is not presenting clear information on the cause of the crash. The previous year had a financial boom and later in October 1929, declines in stock prices made the crash inevitable, this shift in an economic boom and depression have not given clear agreements on how the incident occurred.
In conclusion, according to the article, the stock market caused traumas in the year 1929 with companies were in need of survival to create growths that they needed to meet. Though exaggerations came up from newspapers, companies were on the verge of collapse even when bankers and brokers were on bargain hunting. Articles on the previous year before the trauma have not brought agreements among scholars, the articles do not have clear basis of the cause and many questions are asked by different writers who come up to publish on the stock market crash. The article by Klein does not explain the incidences that occurred as from March to the year 1933.
Maury, Klein. The Stock Market Crash of 1929: A Review Article: The Business History Review (Summer 2001): Pp. 325-351. http://www.jstor.org/stable/3116648« Previous Item Next Item »