-By Don Boys, Ph.D.
It was a fantastic year when the stock market boomed and major U.S. companies made huge profits in domestic and foreign markets. New technology totally changed many industries, and financial pundits told us that we were on the edge of a new level of prosperity. Politicians, business leaders, and economists told us that the future was incredibly bright. No, that was not in recent years but in 1929! From May of 1928 to September of 1929, stocks jumped forty percent! In fact, trading in 1929 was more than twice that of 1928.
Newspaper headlines on Oct. 24, 1929 (Black Thursday) screamed, “Wall Street in Panic as Stocks Crash.” President Hoover (not “President Roosevelt” as our newly elected VP declared!) assured the American public that it was only a little correction, but the prosperous became paupers overnight. The best stock on Wall Street was General Motors, selling for 73 and after the crash, it fell to eight!
Continue reading “Preparation: Recession, Depression, or Panic?”