09-26-2022, 09:58 AM
The 'great depression' after Oct. 25th 1929, aka 'Black Tuesday', was the stock equi
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/"> <img src="https://external-preview.redd.it/BAE52GflS89IIV1t0wKBuTFWuHHX3kdTH_bTFElkRXw.jpg?width=640&crop=smart&auto=webp&s=1c616da8549510e30095ac96839c120639e3c029" alt="The 'great depression' after Oct. 25th 1929, aka 'Black Tuesday', was the stock equivalent to our bear market" title="The 'great depression' after Oct. 25th 1929, aka 'Black Tuesday', was the stock equivalent to our bear market" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>Stock market didn't see anything like this again: Black Tuesday, the 25th of october 1929. The Dow Jones lost almost 90% of its value. As you can see, there has been a rally before. People were buying the dip but it dipped lower:</p> <p><a href="https://preview.redd.it/ztfrhuboxzp91.jpg?width=1879&format=pjpg&auto=webp&s=962e0cc32b879f284bcb2208f0c0b1c7a59df56e">(Comparison: Dow Jones 1929 - BTC 2018)</a></p> <p>​</p> <p>"<em>Stocks crash in rush to sell: Billions lost</em>" - could be a cointelegraph link posted on this sub:</p> <p><a href="https://preview.redd.it/2016p208hzp91.jpg?width=745&format=pjpg&auto=webp&s=b365e76257e766775d18d38c2d21e0ae192a92af">https://preview.redd.it/2016p208hzp91.jpg?width=745&format=pjpg&auto=webp&s=b365e76257e766775d18d38c2d21e0ae192a92af</a></p> <p><strong>What caused it?</strong></p> <p>An estimated 25% of households had invested in Stock at the time. Due to a lack of experience and the faith in always growing markets after WWI is over, people even <strong>took loans to buy stock</strong>. Does that sound familar? Stock market wasn't regulated much. This led to a speculation bubble. [Wiki: <a href="https://en.wikipedia.org/wiki/Great_Depression">the great depression</a>]</p> <p><strong>Follow-up</strong></p> <p>Skyrocketing unemployment rates and bankruptcies followed. In the aftermath, our beloved <strong>SEC has been created</strong> (in 1934) to avoid crashes like this in the future. Franklin D. Roosevelt lowered wages for civil servants and raised taxes. The recovery of the Dow Jones took <strong>20 years</strong> until it reached its ATH again (~1950). [Wiki: <a href="https://en.wikipedia.org/wiki/New_Deal">the New Deal</a>]</p> <p><strong>What about crypto?</strong></p> <p>Some of you had more than one crashes like this in crypto. We did not always see a v-shape recovery like the Dow Jones had after 1932 - but in crypto, everything happens a little faster. Volatility comes with benefits: you will probably (!) not have to grow old to see new ATHs again.</p> <p>So what can we learn from all this? There will be better times. Don't take loans. Don't risk more than you can afford to lose. Keep some USD for important errands - or buying the dip (with caution, just see above).</p> <p><a href="https://preview.redd.it/ath7eg8wazp91.jpg?width=780&format=pjpg&auto=webp&s=b77702cc931b1537dd4845ecfb6cb14dd571187d">(photo from 1929: people waiting accross wall street, worried about their savings)</a></p> <p>(I almost posted this with the title "black friday"
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/madosch"> /u/madosch </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/">[comments]</a></span> </td></tr></table>
<table> <tr><td> <a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/"> <img src="https://external-preview.redd.it/BAE52GflS89IIV1t0wKBuTFWuHHX3kdTH_bTFElkRXw.jpg?width=640&crop=smart&auto=webp&s=1c616da8549510e30095ac96839c120639e3c029" alt="The 'great depression' after Oct. 25th 1929, aka 'Black Tuesday', was the stock equivalent to our bear market" title="The 'great depression' after Oct. 25th 1929, aka 'Black Tuesday', was the stock equivalent to our bear market" /> </a> </td><td> <!-- SC_OFF --><div class="md"><p>Stock market didn't see anything like this again: Black Tuesday, the 25th of october 1929. The Dow Jones lost almost 90% of its value. As you can see, there has been a rally before. People were buying the dip but it dipped lower:</p> <p><a href="https://preview.redd.it/ztfrhuboxzp91.jpg?width=1879&format=pjpg&auto=webp&s=962e0cc32b879f284bcb2208f0c0b1c7a59df56e">(Comparison: Dow Jones 1929 - BTC 2018)</a></p> <p>​</p> <p>"<em>Stocks crash in rush to sell: Billions lost</em>" - could be a cointelegraph link posted on this sub:</p> <p><a href="https://preview.redd.it/2016p208hzp91.jpg?width=745&format=pjpg&auto=webp&s=b365e76257e766775d18d38c2d21e0ae192a92af">https://preview.redd.it/2016p208hzp91.jpg?width=745&format=pjpg&auto=webp&s=b365e76257e766775d18d38c2d21e0ae192a92af</a></p> <p><strong>What caused it?</strong></p> <p>An estimated 25% of households had invested in Stock at the time. Due to a lack of experience and the faith in always growing markets after WWI is over, people even <strong>took loans to buy stock</strong>. Does that sound familar? Stock market wasn't regulated much. This led to a speculation bubble. [Wiki: <a href="https://en.wikipedia.org/wiki/Great_Depression">the great depression</a>]</p> <p><strong>Follow-up</strong></p> <p>Skyrocketing unemployment rates and bankruptcies followed. In the aftermath, our beloved <strong>SEC has been created</strong> (in 1934) to avoid crashes like this in the future. Franklin D. Roosevelt lowered wages for civil servants and raised taxes. The recovery of the Dow Jones took <strong>20 years</strong> until it reached its ATH again (~1950). [Wiki: <a href="https://en.wikipedia.org/wiki/New_Deal">the New Deal</a>]</p> <p><strong>What about crypto?</strong></p> <p>Some of you had more than one crashes like this in crypto. We did not always see a v-shape recovery like the Dow Jones had after 1932 - but in crypto, everything happens a little faster. Volatility comes with benefits: you will probably (!) not have to grow old to see new ATHs again.</p> <p>So what can we learn from all this? There will be better times. Don't take loans. Don't risk more than you can afford to lose. Keep some USD for important errands - or buying the dip (with caution, just see above).</p> <p><a href="https://preview.redd.it/ath7eg8wazp91.jpg?width=780&format=pjpg&auto=webp&s=b77702cc931b1537dd4845ecfb6cb14dd571187d">(photo from 1929: people waiting accross wall street, worried about their savings)</a></p> <p>(I almost posted this with the title "black friday"
</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/madosch"> /u/madosch </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/xnmlqd/the_great_depression_after_oct_25th_1929_aka/">[comments]</a></span> </td></tr></table>