With our current economic climate being… dubious, we thought that it would be a good time to look at another economic disaster in American history. Just six months before Herbert Hoover gave a speech highlighting the economic success The 1929 Stock Market Crash which is closely tied to the Great Depression and felt like it came out of nowhere. But that might be a bit of a misconception. We explore what kicked off the drop, what people did to try and stop/slow it down, and why stock markets and the Economy are NOT the same thing.
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♪ Music by Demetori:
♪ Outro Music: "Articles of Confederation" by Sean and Dean Kiner
#ExtraHistory #StockMarket #History
I feel as if Extra History is trying to tell us something…
March 23, 2020
get outta here
@GC N this didn’t age well
@Kreon Is Vietnam a real problem that literally crash the American economy?
*NO*
@Order of Azarath The whole video is focused on the US Stock Market, of course the ending phrase is about how the US recovered.
Hoover: “the future of our country is bright with hope.”
Narrator: “it wasn’t.”
Don’t Worry! The Neo Eon Currency ends the Fed on 09/23/26 — maybe sooner. That’s when they unveil the NEON GAUD — controller of the currency — with the plan to perfect humanity: Culling the Unfit. FINALLY, a Qualified Judge. A better humanity today, assures a better future for humanity.
O’Carol singing, “we sure need a man like a Hubert Hoover aaaaagggaaaaaaaiiiinnnnnn” 😂😅
“So that was a f*cking lie”
Definitely some Ron Howard narration.
God: “lol let’s see”
“Older men declare war. But it is youth that must fight and die.”
― Herbert Hoover
As a manufactured lee Enfield Mk.3 rifle, this hits hard
wow thats cold
As an iranian in high school who has mandatory military service of 2 years when 18, this actually hits hard
“Kings do the fighting, peasants do the dying”
On the contrary, some of those older men were soldiers turned politicians or Generals who fought and survived war during their younger days and have gained so much experience that they becomes valuable or VIP’s bc of their experience gained and are important to direct and turn the tide of the war in their favor…
But nevertheless, I don’t support war in any form but unfortunately it’s the way of the world where only the fittest and strongest survives…
Always remember, people, the value of stocks is imaginary and does not actually represent how well any given company is doing. It merely represents how well investors THINK it’s going to do in the future based on assumptions common at the time. My favorite example was that time Pixar’s stock dropped because they made Up and investors believed it was going to kill the company because nobody could imagine how they would make toys based on that kind of a movie. Stocks plummeted for a few months, until it turned out Up was the most successful film that year, and then they shot right back up.
It’s more emotion driven than logic-driven.
Also, don’t take out loans to invest in companies. Investing is risky enough on its own.
@Kaden Stimpson How would being publicly traded affect their profits? Right now they are making money. In 2021 they had a net income of 33.36 billion U.S. dollars.
Only invest what you’re willing to lose.
@Imperial Slayer Correction, only invest what you can afford to lose.
@cheezemonkeyeater yeah that’s what I meant
Just further proof the stock market is just Rich People’s feelings.
“remember, the stock market is NOT the economy.” could you say that a little louder please? some people seem to forget this
@Havoc Storm Tracking Traditionally stocks were picked by price-earnings ratio. Companies would pay a dividend from profits. That extra money from the stock is supposed to be greater than current interest rate. Today, stock cost is based on NYSE going up, not the actual return on the stock. Another consideration is actual company value. A few years ago Boeing stock dropped to $10/share. Boeing owns property (like Denver Airport) worth $26/share. Now Boeing stock is $217/share so value less of a buffer for loss, however a dividend of 3.75% is better than current interest rate.
@TheKalihiMan ok intellectual man calm down XD
@TheKalihiMan bro dividends sound great until you realize that most companies pay very little and the dividends are taxed before and after given out
The economy and the stock market is like a man with a dog the man represents the economy and the dog represent indices in the stock market and its the stock market’s job to guide the economy and vice versa.
@TheKalihiMan Your mass layoff prediction for last September didn’t happen.
“The stock market isn’t the same thing as the economy.”
Could you repeat that for the millions of Americans in the back who don’t know anything about economics 101.
You’ll be relieved to know I’m not American and still don’t know anything about economics 101.
@Lockjaw that’s harsh. Calm down.
Bruh I only took one course in Economy in high school and I’m still surprised by how much more I know about economics than most people older than myself. The stock market not only isn’t the same as the economy (hence a reason why historians argue about how connected the crash and the depression were), but the value of stocks is somewhat inaccurate and only represents how well investors _think_ it’s going to do rather than always matching the actual current price. Evidently, many people in the 1920’s (and I guess today apparently) did not know this.
@Kyle Schaff The government doesn’t enact monetary policy, that is up to the central banks, “the fed” for you yanks. It’s also debatable whether governments and central banks should even interfere with the markets, since some analysts trace back to short-sighted fiscal policy as the cause of these huge crashes and market fluctuations.
Tell that to people with retirement plans and 401ks
Thank you so much for making this video. For stressing that our country has survived so many things. And, if we work together, we will definitely get through this.
Markets rise and markets fall. It’s the natural cycle of an economy that relies on markets. The only economy exempt from that is a command economy. And in that there is no market. And in that system economic freedom is greatly reduced.
Thank you for this video. This is very important for people to understand when it comes to the economy, and I hope you cover the economy in more detail soon during this difficult time. People need and understanding of the economy.
“The stock market isn’t the same thing as the economy.” Simple words, too often forgotten.
I am so glad you guys are doing some episodes on this, I’ve never understood this well and when I try to get information about it is so boring and I never really fully get it so thank you! These videos always entertaining and you guys break stuff down in a way that I can actually understand it.
I love how lots of these drawings have “financial” patterns hidden in the artwork, cracks that look like the downwards line of a failing marked, factories with roofs that look like the jagged lines of graphs and statistics. That is some solid attention to detail, and I wanted to say that I appreciate that! I recognize your dedication, and I appreciate you. Have a good one!
“We came back.” But nobody had learned anything, or at least, nobody remember what had been learned until 80 years later when banks issued bad loans to anybody that could sign their names again.
A decade later people and companies are so in debt that they can’t even live through a few months of economic slowdown which might trigger another great depression.
Remember, the banks were forced to give those loans.
@scottydu81 no, they were not. The recession was caused by deregulation.
@Justin H which recession are you referring to?
@Eve 2008
@Justin H forced is probably too strong a word on scottydu81’s part encouraged is probably better. Homeownership was seen as a way of fostering prosperity so the government encouraged the banks to lend money to people banks wouldn’t have loaned money to under normal circumstances. Deregulation may have been part of the cause, but the government did have a hand in causing the 2008 recession.
“Buy buy buy! Man, this is great! The market is going to go up forever!”
“But what if it doesn’t?”
“Oh crap, I never thought of that! Sell sell sell!”
Stocks so low its in the negative 100,s
We welcome our host economic downturn give em a round of a plause
Oversimplified fan here let’s goooo!!!!
oversimplified reference
The stock market had crashed which lead to economic downturn which meant people stopped buying which lead to more economic downturn…
What I’m learning from a lot of these videos is that all of these complex systems work really, really well. Until one day…they don’t. Unfortunately, the imminent collapse is often only obvious in hindsight. Otherwise, we would all be timing the market and sell at the peak.
I feel like the south sea bubble was the precursor to all financial issues we see later, or at least the example for how many would fall.
“why i haven’t been this entertained since the stock market crash of 1929”
“Soooo many orphans”
@Jeroen Both definitely
“Uh huh”
I love seeing hazbin hotel fans
“History Doesn’t Repeat Itself, but It Often Rhymes” – Mark Twain.
The art in this episode is absolutely incredible.
I know these were hard times but Wow your illustration of this event was suspense filled, funny and thrilling. The pictures also made it more exciting.
“Man that was crazy. Could never happen again though right?”
-Bankers, 2007