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

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"