Stock Market Crash of 1929 [Can it Happen Again?]

Stock market crash of 1929 set records for the highest volume ever traded in US history. It resulted in 33% of banks being forced to close and a lost of $300 billion.

Most people associate the crash of the stock market with October 29th, Black Tuesday.

In fact, it’s said that the opening bell was never heard on Black Tuesday because of the shouts of “Sell! Sell! Sell!” were too loud…

This article is part of our free series on what you need to know about closing a bank account overseas, which you can access here.


  • The 1929 Stock Market Crash was the beginning of the Great Depression
  • Between 1929 and 1933, the stock market value dropped by over 70%
  • 33% of banks were forced to close during the crash of the stock market of 1929
  • Over $300 billion (inflation adjusted) was lost during the market crash of 1929

During the last hours of trading on Wednesday, October 23rd, 1929, stock prices suddenly plummeted and the Dow lost 21 points – 6.33%, which really demonstrated how bad the crash of the stock market would be. And how it impacted people and their personal and business investments.

Over the following days, as stock prices continue to drop, managers of investment trusts, investment bankers, and government officials would do their best to calm fears, prop up the stock market, and keep the plates spinning.

But it was fruitless.

On Thursday, October 24th, 1929, despite the efforts of President Hoover, the titans of Wall Street, and corporate Americans, the stock market lost another 2.09% and set records for the highest volume ever traded in history.

And from there, panic set in. At the end of the crash of the stock market, over $25 billion ($319 billion in today’s money) was completely wiped out.

It took 25 years, from 1929 to 1954, for the stock market to reach its value before the October 1929 crash. All things considered, it was the most devastating market crash in the history of the United States.

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This report is 100% FREE and if you care about whether your money is safe or not, you should grab a copy now…

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. What Does the 1929 Market Crash Have to Do With Banking?
  2. How to Find a Bank to Withstand the Next Major Market Crash
  3. Unlocking the World of International Banking
  4. Frequently Asked Questions
  5. How to Protect Yourself From a Market Crash

What Does the 1929 Market Crash Have to Do With Banking?

That’s a great question, and a fair one given that this isn’t a history publication.

You see, McKinsey – the big consulting firm that charges governments and corporations way too much money for their insights – released a report on the global banking sector.

In it, they claim that 33% of banks around the world could fail during the next major market financial crisis.

We thought this was timely given the 90-year anniversary of the largest market crash in US history.

But what do you think?

Could you imagine 33% of the banks (3 out of 9) in the country where you’re sitting right now closing down? All because they could not withstand a market crash like the 1929 stock market crash?

Are they so poorly managed, over-exposed to bad borrowers, over-exposed to toxic investing stocks, and so vulnerable to stock market movements that they could fail?

This isn’t a rhetorical question – think about it for a second.

As I write this note, I’m sitting in Panama – Panama’s banking sector is relatively well managed, decently regulated, and banks here are conservative with their risks.

They have to be. There’s no central bank to come in and bail them out if they screw up. In other words, there’s no safety net if there is another market crash like the 1929 stock market crash.

When I think about the largest 9 banks in Panama, I don’t see them failing. In fact, when I think about the top 18 banks in the country, I’m not worried.

But, there are 78 banks in Panama. And when you start considering the other 60 banks, McKinsey’s figures start to sound about right… maybe even conservative.

Remember, we’re talking about the outcome of another stock market meltdown and all the implications that it would have.

Implications of a Market Crash:

  • Loan defaults by borrowers
  • Plummeting investment value
  • Margin calls by overseas brokers
  • Currency devaluations & increasing FX risk
  • Pressure from regulators to increase capital levels
  • And much more…

But Panama isn’t the concern. In fact, the McKinsey report highlights Europe and Asia as the major hotspots of potential banking failure.

As they put it…

“Nearly 35 percent of banks globally are both sub-scale and suffer from operating in unfavorable markets.” 

They also went on to point out flawed business models as a key area of concern.

These are all factors that contribute to whether or not a bank is going to be able to protect your money in the long term, which is why we talk about them so much at GlobalBanks. Likewise, these factors will directly determine whether your bank is safe from economic shocks like those during the October stock market crash of 1929.

Choosing a bank for you or your business requires more consideration than simply walking into the nearest branch of your local bank. As one of our team members recently put it…

“You wouldn’t hand a bag of cash to a stranger and ask them to hold onto it without knowing if you could trust them. So why would you do that with a bank?”

McKinsey said that in order for banks to survive “merging with similar banks may be the only option if a full reinvention is not feasible.”

Fortunately, unless you own a bank yourself, you don’t have to worry about the calamity that reorganizing or merging a bank would cause.

Instead, you need to find a bank that is going to look after your money. And that means ensuring that you and your fellow depositors are not put at risk.

How to Find a Bank to Withstand the Next Market Crash

Well, you can either join our premium membership GlobalBanks IQ and our support team would be glad to help you with that process (get more information here).

Rest assured that there are well-managed and safe banks available for you around the world. Banks that will actually protect and grow your money. You just need to know where to find them and how to avoid the pitfalls to successfully open accounts.

If you’re new here, that’s what we do: unlock the secret world of offshore banking so you can grow your wealth, protect your assets, invest safely in the stock market, protect your business, and increase your freedom. Read on for more information below.

Unlocking the World of International Banking

By using the information we provide, you will open ultra-safe bank accounts to protect your money. That means safety from corrupt governments, mismanaged banks, and frivolous lawsuits. And protect your money from future economic events, reminiscent of the October stock market crash of 1929.

And while these secrets used to belong to the ultra-wealthy, that’s no longer the case.

We’re sharing them with our subscribers for free and giving GlobalBanks IQ Members access to the best of the offshore banking world.

When you join our premium membership you get access to the tools and intelligence you and your business need. You also get the key contacts you need to instantly access the offshore banking world. And that means open bank accounts, keep them open, and avoid expensive mistakes.

Want to learn more about the Great Depression and how to protect yourself from a market crash?

If you want to learn more about how to protect yourself and your money if the stock market crashes, feel free to get in touch with us by using the chat feature on our website. We’d love to know your thoughts and would be happy to answer any questions!

Frequently Asked Questions

Below are three of the most common questions that we receive from people looking into the 1929 market crash. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Factors Led to the Stock Market Crash of 1929?

The factors that led to the crash of the stock market of 1929 include underlying economic issues like rising unemployment, decreasing production, and overvalued stock prices pushed higher by widespread speculation. Additionally, public panic increased rapidly due to negative press coverage and limited protection for shareholders and depositors.

How Much Did the Stock Market Go Down in the 1929 Crash?

How much the stock market went down in the 1929 crash depends on the specific period you are referring to. For example, on Black Monday (October 28th), the Dow Jones dropped almost 13%. However, if you look at the broader fallout of the 1929 crash which led to the Great Depression, you can see that stocks lost over 70% of their value between 1929 and the lowest point in 1932.

What Causes the Stock Market to Crash?

What causes the stock market to crash is often a combination of economic and social factors. This is generally referred to as a bubble, which is characterized by widespread speculation and overvalued stocks. That said, the trigger for a stock market crash is often an overall shift in public sentiment about the outlook on the markets view for investing in stocks from one of confidence to one of fear and uncertainty.

How to Protect Yourself if the Markets Crash

If you’re ready to take action and start opening international accounts, want to be investing in safe jurisdictions, or are just not sure where to start, you can access GlobalBanks IQ, our dedicated international banking intelligence platform.

GlobalBanks IQ gives you everything you need to start finding and opening accounts for you or your business today.

When you join GlobalBanks IQ, you immediately unlock the GlobalBanks Database of international banks — home to 250+ banks in 50+ countries. 

And, you get access to our library of premium (members-only) reports, including proven account opening strategies, country-specific banking options, and lists of banks for specific client types.

Plus, you unlock our account opening checklists, dedicated account opening alerts, and much more.

To get started, click here to see if GlobalBanks IQ is the right choice for you to start accessing the benefits of international banking today.

You can also view all of the account opening solutions offered by GlobalBanks on our products page.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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