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The rapid increase in industrialization was
fueling growth in the economy, and technology improvements had the leading
economists living that the uprise would continue. During this boom period, wages
increased along with consumer spending and stock prices began to rise as well. Billions
of dollars were invested in the stock market as people began speculation on the rising
stock prices and buying on margin.
On Thursday, October 24, 1929, the bottom began to fall out. Prices dropped
continually as more and more investors tried to sell their holdings. By the end of the day,
the New York Stock Exchange had lost four billion dollars, and it took the exchange
clerks until five o'clock in the morning the next day to clear all the transactions (Hicks 9)
Following Monday the realization of what had happened began to sink in, and a
full-blown panic set in...
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