Summary of El crack del 29 y la Gran Depresión

00:00:00 - 00:05:00

The video discusses the lead-up to the Great Depression of 1929, which was a result of the prosperous period called the "Roaring Twenties" where everyone could easily borrow money and invest. The expanding credit was due to the Federal Reserve, which lowered interest rates, opening up the stock market to the public. The situation improved further with the introduction of credit-based stock trading, which increased demand and inflated the prices of stocks creating a bubble. The bubble burst on Black Wednesday, October 23, 1929, and the Dow Jones suffered its worst drop in history on Tuesday, October 29, causing widespread poverty and unemployment that eventually spread to other parts of the world, including Europe, where it led to political and social tensions.

• 00:00:00 In this section, we learn about the lead up to the Great Depression of 1929, starting with the emergence of the US as a leading power after World War I. This led to a prosperous period called the "Roaring Twenties" where everyone, from bankers to shoeshine boys, could easily borrow money and invest. The expanding credit was due to the newly created Federal Reserve, which lowered interest rates. Thanks to Charles Michel, who opened firms across the country for stock investment, the stock market openened up to the public. Many could invest a small amount of capital and receive greater profits because of the growing market. The situation improved further with the introduction of credit-based stock trading, a low-interest rate borrowing that allowed people to invest 10 times more than their real capital. This increased demand inflated the prices of stocks, disconnecting them from their real values, creating a bubble. Despite warnings it went unnoticed, but eventually, the bubble burst on Black Wednesday, October 23, 1929, after an unprecedented demand for stocks from overconfident investors.
• 00:05:00 In this section, we see the events leading up to the stock market crash of 1929, known as Black Thursday, where a sudden wave of selling caused stock prices to plummet, and panic ensued. Despite attempts by powerful figures such as John D. Rockefeller to inject money into reliable "blue chip" stocks, recovery was short-lived, and on Tuesday, October 29, the Dow Jones suffered its worst drop in history. The Hoover administration was unable to stop the downfall, and the subsequent closure of banks and factories led to widespread poverty and unemployment. The Great Depression eventually spread to other parts of the world, including Europe where it led to political and social tensions, with Adolf Hitler rising as a symbol of economic salvation and German power.