What were the causes of the wall street crash?

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HISTORY COURSEWORK#2

What were the causes of the
wall street crash?

DOMAIN3. To comprehend, interpret, evaluate and use a range of sources as evidence in their historical context.

1. Study Source B.  What can you tell from this  source about US stock markets in the 1920’s? (4 marks)

Source B shows that from 1925 until late 1929 the price index went up because investors were confident that share price would rise. This market is called the bull market.. The steep line shows that the economy has had an increase in prices.

From late 1929 to mid 1931 the prices of the stock fell amazingly. The boom that says “The Crash” we can infer it as a big deal has exploded, that there has been a catastrophe. The line changes completely its direction to the other side (downwards). Investors began selling a lot their shares to pay off their loans. It means that this second part of the line represents that it was a bear market. Also we can infer that the second line is much more steeper than the first one meaning that in less time the same amount of shares were sold.

        The price index for the late 29’s was approximately 24 and by a few years later it went down to 0 or 1. This shows that before the 1939’s the system of everybody buying shares was working really well in the stock market, helping a lot the U.S. economy, but finally they saw it was no at all that good (the method) as they couldn’t control it, it was out of their hands.

2. Look at Source E . What was the cartoonist’s opinion of the wall street crash? Explain your answer. (4 marks)

        Just by taking a brief look on the source I could see that the cartoonist did not have a very good opinion towards the consequences of the Wall Street Crash. The date shows that the drawing was made after the crash: “29th of October 1929”.

The drawing takes place in Wall Street NY because one of the buildings name was : “NY STOCK EX.”, referring to the New York’s Stock Exchange which is the building were the stocks are stored, bought and sold. The main theme this source has I could say is chaos, firstly because people running and screaming like crazy with terror portrayed on their face, also because buildings falling, but mainly because of the source’s title: “Terrifying Tuesday”  The cartoon is disorganized, dull and it infers confusion.

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At the top right hand corner there is a Latin word which says: “Dies Irae” which if translated in English it would mean: “God’s Anger”. For this cartoon God is angry towards the greedy attitude people have, as it is said in the Christian religion that it is a sin.  

Thunders from the sky are falling and destroying buildings on Wall Street (where the cartoon is located). People are running from the buildings and terror is portrayed o their face. All of this facts support my thesis on the author’s opinion about the Wall Street crash.

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