Anonymous
Anonymous asked in Arts & HumanitiesHistory · 3 weeks ago

were most people expecting the stock market to crash in 1929, but just didnt know exactly when? (kind of like now in 2020?)?

Update:

everyone knew it was way way over valued. and they were just waiting for the music to stop and sell quickly, but they didnt expect everyone else to be thinking the same thing?  why?

Update 2:

i remember reading somewhere that there were already obvious signs that the economy was slowing down or had already slowed down incredibly by the business indexes and the London Stock Exchange had already crashed in September. So why it was still rallying after that?  and excessively too? why it took so long to crash?

4 Answers

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  • Ludwig
    Lv 6
    3 weeks ago

    No, it was more like the 'dot.com' boom of 2000.  Stock prices were rising at a rate which everybody knew could not continue, but nobody wanted to be the first person to 'jump off'.

  • Athena
    Lv 7
    3 weeks ago

    "Most people" were not involved in the stock market at that time  "Mutual Funds" were not invented yet. The vast majority of Americans still kept their money in coffee cans in their kitchen. 

    The rules for buy stock were also different which added to the crash.  At that time you only 10% of the total cost to make a purchase.  You have a few days to make your margin call.    You HOPED that your stock went up by then, you could sell, and pay your bills with the profits.   That is not the case today.

  • The same thing happened in 2000, I don't remember any predictions of such a collapse, the small investors with $1000 portfolios lost their money just the same as the billionaires. The market had been going up up up for most of the decade, common sense goes out the window when you are making bucketloads of cash for hardly any effort. Yes the obvious signs were certainly there, we know that in hindsight but few were smart enough to predict it in time to get out in time. I myself lost nearly half a million dollars in the 2000 crash, I used to read all the financial publications to see what the "experts" were saying but if only I knew back then what I know now.

  • 3 weeks ago

    Most people were too poor to give a second thought about the stock market.  It wasn't as accessible as it was today.  Those that were in those circles hadn't seen a crash like that before and were not prepared in any manner.

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