October 29, 1929, also called Black Tuesday, is the day the stock market crashed, ushering in the Great Depression. For a decade, the United States seemed to be experiencing economic prosperity. However, a series of events ushered in the 1929 depression.

Roaring Twenties

The Roaring Twenties was a time of perceived economic growth, with the growth of industries such as the automobile industry and wage increases upped the standard of living. In the 1920s, the government did not regulate business practices.

Stocks Peak

From 1920 to 1929, stocks peaked, quadrupling in value. According to "The First Measured Century," investors put a lot of money in the stock market, believing stocks were a sure thing.

President Calvin Coolidge

In 1925, Secretary of Commerce Herbert Hoover cautioned President Coolidge about stock market speculation. Coolidge downplayed Hoover's warning in his address to the nation in December.

Banks

The United States had an overabundance of banks before 1929, offering a large number of loans and playing the stock market. Herbert Hoover's Presidential Library says only a third belonged to the Federal Reserve System.

International Relations

International banks began failing in the late 1920s and trade slowed down. Instead of taking note, people continued relying on the stock market.

1929

In September, markets collapsed and investors began selling shares. Panic selling escalates in October, culminating in the crash on October 29.

Source:

The Library of Congress: Progressive Era to New Era

Herbert Hoover Presidential Library

More Information:

Miller Center of Public Affairs: Calvin Coolidge

The First Measured Century

Great Depression: The Concise Encyclopedia of Economics