The Great Depression, 1929

The Great Depression was the longest and most severe depression in global economic history, lasting for virtually the entire period between 1929 and the outbreak of World War II. As a stark contrast to the roaring '20s, a period of prosperity and ostentatious wealth, the Depression created massive and virtually instantaneous poverty.  

The beginning of this period was marked by the Wall Street Crash, which remains the single most devastating crash in U.S. stock market history. On October 29, 1929, $10 billion (around $95 billion today) turned to dust. For some, it took entire lifetimes just to break even from the losses made at this point. 

In the years leading up to Black Tuesday, the Dow was turning countless men into millionaires. The market became a hobby for many ignorant investors, who readily poured all their money into the stocks of companies (many of which were fraudulent) that they didn’t understand. 

When the government raised interest rates, panic ensued. Investors were desperate to liquidate their stocks, but the money simply wasn’t there. Unfortunately, banks also invested in stocks, and the panic led to a run on those banks that reduced many to insolvency and failure. The country was thrust into the Great Depression, and much of the world followed.