The 1929 Crash an its Aftermath

The stock market crash of 1929 came unexpected and ended the era of the golden 20ies. The abrupt decline in stock prices undermined the confidence on Wall Street and Main Street.
 
The crash would not have been possible without the speculative bubble that preceded it. The almost unrestricted use of leverage and boundless optimism were significant factors that led to the meteoric rise of stocks as well as to their decline. After the fact much blame was put on the monetary policy of the 20ies and an extended period of low interest rates. 
 
The peak in the market was reached in early September 1929. Selling intensified in October when stocks finally crashed in a free fall. 
A dramatic rally into early 1930 caused investors to temporarily regain confidence. Some of the highflying technology stocks actually reached new highs. However, the new optimism was disappointed quickly. 
A concerted effort by powerful and influential figures on Wall Street to stop the decline yielded only temporary results and proved futile. 

The severe decline in stock prices which followed led stock prices plummeting by an incredible 92% from their September 1929 peak. The psychological effect of the eroding confidence on Wall Street led to a downward spiral in the US economy leading to the Great Depression.