Admonition
Despite the two market breaks recorded in March and June, the stock trade inclined even more as from June all the way to September, a duration whereby the Dow Jones Industrial Average increased tremendously by almost a solid tenfold peaking at a rich 381.17. Given the increase in the industrial value, more and more investors speculated.
WALL STREET CRASH, 1929. Interior of the New York Stock Exchange on ‘Black Friday,’ 25 October, 1929. (Photo by ullstein bild/ullstein bild via Getty Images)
People went out and took loans and borrowed money just to meet their buying of the stock shares with the hope that the rewards would cover their tracks, call it, “the end justifies the means.” They believed in the inherent stability of the market, and we’re confident about the rewarding benefits they anticipated. This hope was cut when Roger Babson, a financial expert predicted the coming of a crash that was shortly followed by an actual crash that was then named after him, the “Babson Crash.”