Everything Everywhere Daily Black Tuesday and the 1929 Stock Market Crash (Encore)
Oct 28, 2025
Dive into the dramatic events of Black Tuesday and the start of the Great Depression. Discover the shocking statistics behind the 1929 stock market crash, including a staggering 89% drop in the Dow. Explore the economic boom of the Roaring Twenties and how it led to overconfidence and speculation. Learn about the impact of buying on margin and the panic that ensued on Black Monday. This tale weaves historical precedents with momentous consequences, shaping the future of the economy.
AI Snips
Chapters
Transcript
Episode notes
Roaring Twenties Fueled By Postwar Shift
- The 1920s boom followed a painful postwar contraction and rapid technological adoption across many industries.
- New tech, pent-up demand, and US dominance turned a 1921 low into the Roaring Twenties expansion.
Fragmented Banking Increased Fragility
- The US had an unusually large number of small, regional banks which limited diversification and resilience.
- This banking structure magnified local shocks and contributed to financial fragility before the crash.
Market Gains Masked Vulnerability
- The Dow rose roughly 5.7x from 1921 to its September 3, 1929 peak, reflecting extreme appreciation.
- That sharp rise set the market up for vulnerability once sentiment shifted.