Black Tuesday
Definition
This refers to October 29, 1929, when panicked sellers traded nearly 16 million shares on the New York Stock Exchange (four times the normal amount), and the Dow Jones Industrial Average fell -12%. Black Tuesday is often cited as the beginning of the Great Depression.
Analogy
Think of Black Tuesday as a massive thunderstorm at an outdoor concert. Just as such a storm would cause chaos and potentially end the event early, Black Tuesday caused panic in the stock market and marked the start of an economic downturn.
Related terms
Stock Market Crash of 1929: This was a major stock market crash that occurred in late October 1929. It started on "Black Thursday" and ended on "Black Tuesday". It's like different stages of that thunderstorm causing havoc at our concert.
Great Depression: A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The effects were felt for over a decade, much like how it takes time to recover from damages caused by a severe storm.
New Deal: A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression. Imagine this as rebuilding efforts after our hypothetical storm has passed.
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