Two days that shook the world, the 1929 Wall Street crash, is remembered this week 75 years after the event.
It was started by the infamous black Thursday of October the 24th, which ran into a black Friday, and then, after a weekend of jangled nerves, a black Monday opened the floodgates of panic selling of blacker-than-black Tuesday the 29th, when 50 million dollars a minute flew out of the windows, closely followed by hordes of ruined speculators. The Monday and Tuesday falls drove the Dow down by nearly a quarter, and by 1932, it had lost 90 percent of its value. But could it happen again? Today most analysts say a similar crash, with investors having to sell short to cover the money they had borrowed to buy the shares in the first place is all but impossible, although one could be triggered by other factors, and they stress that regulators, government and the Federal Reserve now intevene more forcefully and with greater expertise. The 1987 crash, for example, did not lead to a 1930’s style depression with 25 percent US unemployment, and crisis around the world. Just as well. In September the Dow’s high was over 380 points. By 1932 it hadslumped to just over 40, and would not go back through the 300 mark until…1954, over two decades later.