the curb of the NYSE building. This "curb exchange" later formed the American Stock Exchange, or the ASEX. (Edustock /3088/)In the 1920's the American economy was booming, due in an increase in industrialization, and an increase in technology. There was an increase in wages, an increase in spending, and an increase in stock prices. People bought billions of dollars worth of stock -on margin, mind you- and economists said that the uprise would continue. Because of the large number of people buying in margin, left the stock market in a vulnerable position. Many stockholders, ready to reap a fortune, invested all they had, even mortgaged their homes and emptied their bank accounts. As the prices spiraled higher and higher, economists began warring people of the turmoil that could lie ahead, but everyone was interested in making money and paid no heed. Finally, in October of 1929, the purchasing frenzy calmed, but then burst into a selling bonanza. On Thursday, October 24th, 1929 the strong iron bars of the U.S. economy began to give way. Stock prices fell to the floor as investors struggled desperately to sell. When the New York Stock Exchange closed that day, it had lost over four billion dollars. By the next Monday, the 28th, a widespread panic took form. Thousands of investors, some "normal", working citizens, were ruined financially. By the end of 1929, stock values had dropped by fifteen billion dollars. (www.thehistorychannel.co.uk) "There have been many market crashes since 1929 however this is the one that had the greatest impact. It is still to early to say for sure whether the economic situation that is effecting global stock markets will result in such a scenario. The only fact that is certain is that we are in the middle of a large correction in the value of global stock prices. With crises in Asia, Latin America and now Russia rolling from one to another, the fear of a 1929 style crash is once again with us."(www....
