The "Black Friday", 25.10.1929 (Horror And Panic)

Random News - When the Berlin stock exchange opens on the morning of October 25, 1929, horror and panic spread. Due to the time shift, the price losses of the "Black Thursday" will not reach Europe until Friday. To a fabulous 90 percent, the Dow Jones index has slipped below its peak of six weeks ago. Eleven billion dollars of money have been destroyed in the past 24 hours.

The "Black Friday", 25.10.1929 - image:n-tv.de

Dr. Martin Uebele, the Institute for Economic and Social History at the University of Münster, said: "The collapse of the New York stock index of about 11 percent and then relatively quickly to mass sales Then they were also trying to force those who owed them money to sell their shares in order to recover their outstanding loans". (Also Read: Fidel Castro -Journey And Facts-)

"Everybody ought to be rich"

In the 1920s the economic upswing seems to be boundless. Even low-income people invest their money in equities to benefit from the boom. Stock market speculation becomes popular sport. Anyone who does not have money takes a loan - even if the interest rates are astronomically high. Press and business experts advise buyers. Many Americans believe in an everlasting growth, as Martin Uebele said: "People have been indebted to buy stocks of companies that have produced new products: refrigerators, photo cameras, cars, GM, Ford are companies that do a lot Producing high profits, and suddenly there was a high debt level, also of private households".

"People have been indebted to buy stocks of companies that have produced new products: refrigerators, photo cameras, cars, GM, Ford are companies that do a lot Producing high profits, and suddenly there was a high debt level, also of private households"

Just a few weeks before the collapse of the stock market, the General Motors Director John Raskob published his famous article "Everybody ought to be rich, everyone should be rich": "Imagine a man marries at the age of 23 years and saves If he invests in common shares and reinveses the dividends and rights, then he has at least $ 80,000 after 20 years and an income from his investments of about $ 15,000 a month, He is going to be rich, and since everyone is able to do so, I firmly believe that not only everyone can be rich, but everyone should be rich".

The soap bubble bursts

This dream crashes like a soap bubble with the crash. The impact of the economic collapse is devastating. In 1932, 25 per cent of US Americans are unemployed, while those who are abducted lead to a massive migration from the great plains in the heart of the US. Even though things are going up again in the meantime, the Great Depression is still shaping the entire 1930s. Martin Uebele, an economic expert, said: "This was an impoverishment of the masses, an impoverishment that has spread through all sectors of industry and agriculture". (Also Read: Armed Mannequin Challenge)

The US-American crisis also tore the European economy into the abyss. Germany is particularly hard hit in the following years. Banks must close, companies collapse, millions lose their jobs. It also plays a role in the fact that American banks lent large amounts of money to Germany in the 1920s. Money they are now reclaiming. Martin Uebele said: "Germany had to make reparation payments abroad, but it had also been heavily indebted to the private sector, so the US as well as Germany came to this edge of the abyss US gross domestic product".

"Germany had to make reparation payments abroad, but it had also been heavily indebted to the private sector, so the US as well as Germany came to this edge of the abyss US gross domestic product"

Almost 80 years later, the world is looking back at the stock market charts again: With the collapse of the Lehmann Brothers investment bank, a global economic crisis will begin again in autumn 2008. As in the 1920s, the belief in unlimited growth and wealth is an illusion for all.