Tuesday, November 30, 2010
Stock market crash?
I have a question regarding the effects of WWI. What confuses me the most is the stock market crash. I understand the US was spending ton's of money and other nations were struggling just to get a scrap of bread, and that caused a big unbalanced money distibution which in the end may have caused it crash the way it did. But why did it crash so fast. Why was it that in one day the stock markets fell 9%? Why didn't that happen over little bit longer span of time?
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While there were a few days in which the stock market dropped dramatically, if you were to look at this more closely you would see days, weeks, months, even of decline following the original crash in October. As to why it crashed rapidly, that is the way the stock market works. Money was being lost instantly, so the quicker you got out the less money you lost.
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