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The story of El New Deal
The Crack of 29 was the most devastating stock market fall in the history of the stock market. UU. And the hardest economic crisis that capitalism has suffered throughout history, many people ruined and lost everything, this crack was followed a strong crisis known as the great depression.
On October 23, 1929, without warning, New York’s stock market prices fell into chopThey were surprised, since for 5 years the bag had only uploaded.
In 1919 EE. UU. Emerged victorious World WarViennese consumption and do it on credit. With the ease of getting credits and the increase in income available, the population was looking for new ways to become richer.
A group of elitist bankers from Wall Street decided to bring corporate bonds and actions to the market, since they had an audience willing to invest in them to gather capital for private companies that participated in the New York Stock Exchange, in this way they would also getA great benefit. From that all kinds of audiences could invest in actions and they lost their stigma. This was possible thanks to technology, since the quotation tapes were on all of the USA. UU.
People had so much faith that it began to ask for loans to invest in stock market. This way of buying shares was known as the purchase of credit values. The star relationship between elite bankers and politicians helped the government reduce the control of Wall Street to a minimum. This caused the market to have its own law and the usual abuse of privileged information, the 20 -year stock market was not fair or democratic.
In March 1929 I took the presidency Herber Huber, he was alerted to what was happening on Wall Street, but did not have the political value to intervene, so when it became president he did nothing to stop him, he was not willing to regulate theMercado although it was not the only one who had that thought, the banker Wall Wargur unlike Herber Huber launched a small warning, but people ignore it although the most cunning bankers were noticed that the market was being overheated with what they decided to come out during thesummer.
As Jhon Kenedy said the clean vote knows as much as I about the stock market maybe it is time for me to leave her Hurber watching the situation asked a group of elitist bankers that if he should worry about the situation of Wall Street, andOne of them replied that the market would be corrected alone, he did not see the need for the government to intervene, five days later the stock market collapsed. On October 24, 1929 ´´the Black Thursday´´ the crack began, people were afraid because the market did not stop falling, the popular reaction was this cannot be happening.
The bankers seeing the situation knew that they had to do something with which Charles Mitche president of the National City Bank entered the offices of JP Morgan, since he had summoned him to be present at the meeting that was going to occur, at the table4 other important bankers sat down, including Richard Wizny Vice President of the New York Stock Exchange and the meeting was chaired by Thomas Lamon.
In this meeting they planned to put 250.000.000 of dollars, those funds would be used for a key list. Wizny bought 25.000 actions at a much higher price than that they were selling to this more people like Jhon Roquefeler were added with the purpose of market confidence and worked.