Crash of 1929/Timelines

Stock price changes

(see also the chart for the period 1920 to 1940 [1])

Dow Jones Industrial Average: Low [2]

03/09/29	07/09/29	14/09/29	23/10/29	24/10/29	26/10/29	28/10/29	29/10/29	02/01/30	02/01/31	02/01/32	03/02/33	02/01/34
381	375	365	303	272	296	256	212	242	161	74	59	99

Timeline of events in the United States

1921 - 1929

Strong economic growth: GDP increases by 42% (growth rates: 10.5% pa 1921-23; 3.4% pa 1923-29)

Stock market boom: the DJIA index at the 1929 peak is six times its minimum level in 1921 [3].

1927

Federal Reserve Bank cuts discount rate from 4% to 3.5%

1928

Federal Reserve Bank tightens monetary policy in order to restrain the boom. Discount rate raised to 5%

October

Death of Governor Strong of the New York Federal Reserve Bank

1929 June

August

Start of a downturn in economic activity

Federal Reserve Bank raises discount rate to 6%

October

THE CRASH [4]

24 Black Thursday DJIA falls by 13%

28 Black Monday DJIA falls by 12.8%

29 Black Tuesday DJIA falls by 11.7%

1930-33

The "Great Contraction"

Three waves of panic create a progressive collapse of the United States banking system, with the failure of nearly half of the banks and heavy. losses by the others.

1933

Banks close in "banking holiday"

Unemploment 25%

1937

Unemployment 13.8%