The Wall Street Crash of 1929 was a collapse in US share prices that peaked between Black Thursday, 24 October, and Black Tuesday, 29 October 1929. The Dow fel…
The Dow rose about six-fold, from 63 in August 1921 to 381.17 in September 1929, as cars, radio and credit reshaped America.
Brokers' loans topped $8.5 billion, more than all US currency in circulation. Many put down only a small slice of the price.
The economy had already peaked in August and the New York Fed had raised its rate to 6%. Few saw a crash coming.
A record 12.9 million shares traded. Prices fell 11% before Richard Whitney bid $205 for US Steel for a bankers' pool.
The Dow fell 12.82% to 260.64. The bankers did not step in again, and margin calls went out across the country.
Record volume and another 11.73% fall, to 230.07. In two days the Dow lost about 23%.
Bank runs spread from Nashville; the Bank of United States closed on 11 December. About 9,000 banks failed by 1933.
89% below the 1929 peak. Unemployment reached about 25% in 1933.
A national bank holiday, the Emergency Banking Act and a radio fireside chat restored trust. Banks reopened on 13 March.
Deposit insurance began on 1 January 1934. The SEC was created in June to police markets and margin.
FINRA margin debt reached a record $1.5 trillion in June 2026. Safeguards are stronger, but leverage is back.
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