Black Tuesday, October 29, 1929, was the most devastating day of the Wall Street Crash of 1929, marking a pivotal event in the onset of the Great Depression. It is characterized by a catastrophic collapse in U.S. stock prices following a period of rampant speculation, margin buying, and economic instability. On this single day, a record-shattering 16.4 million shares were traded, and the Dow Jones Industrial Average plummeted approximately 12%, wiping out billions of dollars in paper wealth. The panic selling was so severe that stock tickers could not keep pace with transactions. Black Tuesday is not merely a financial event but a socio-economic turning point that led to widespread bank failures, mass unemployment, and a profound reshaping of global economic policy, regulation, and theory.
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Wiki Context
Overview
Overview and Definition
Introduction to the event, its formal definition, and its position within the broader Wall Street Crash of 1929.
Historical Context and Origins
Examines the economic conditions of the Roaring Twenties, including the speculative bubble, the role of margin buying, and the preceding crashes of Black Thursday and Black Monday.
The Crash: Mechanisms and Chronology
A detailed, minute-by-minute breakdown of the trading day on October 29, 1929, analyzing the mechanics of the sell-off, trading volume, and price collapses.
Immediate Consequences and Financial Contagion
Explores the direct aftermath: the wipeout of investor wealth, the cascade of bank failures, the collapse of business investment, and the initial spike in unemployment.
Government and Regulatory Responses
Analyzes the initial policy reactions, the shortcomings of the Hoover administration's response, and the long-term regulatory reforms it precipitated, such as the Securities Act of 1933 and the Glass-Steagall Act.
Economic Theories and Interpretations
Discusses competing economic explanations for the crash and its role in triggering the Depression, including Monetarist, Keynesian, and Austrian school perspectives.
Lasting Legacy and Historical Significance
Assesses Black Tuesday's enduring impact on financial regulation, macroeconomic policy, public psychology, and its place in historical memory as a cautionary tale for market speculation.
Modern Parallels and Lessons
Draws comparisons to subsequent financial crises (e.g., 1987, 2008), exploring what lessons from Black Tuesday have been applied or forgotten in contemporary financial systems and risk management.