5. Economist Roger Babson predicted the crash about a month ago
On September 5, 1929 economist Roger Babson gave a warning ‘Sooner or later, a crash is coming, and it may be terrific’. He had predicted a crash several times before but this time it really happened. Over the next few weeks the prices began to move downward. In the last hour of trading on October 23, the stock prices began to fall sharply. People were taken by surprise and panic set in. The next day, known as Black Thursday, saw prices drop drastically. Newspapers reported losses as high as $5billion. The following day President Herbert Hooverreassured Americans that business was sound.
6 The Dow dropped a record 13% on Black Monday
Despite bankers pouring money into the market and newspapers reporting that brokers felt that the worst was over, the market went into a free fall as soon as the opening bell rang on October 28 (‘Black Monday’). By the end of the day, the Dow had dropped a record 38.33 points or 13%. So many Shares changed hands that traders had to work till late night to record them all and be ready for October 29.