On October 24th, 1929 a day known as "Black Thursday", the market lost 11 percent of it's value at opening bell. The market began a recovery the next day, but continued to fall and hit another bottom on November 13th. President Herbert Hoover addressed congress in December hopeful that the worst was behind us. Unfortunately, about one year later the market began a much longer steady slide from April of 1931 until July of 1932. On Black Thursday the market fell to 258.47. On July 8, 1932 it closed at 41.22.
Herbert Hoover's hopeful message in 1929 to congress:
"The country has enjoyed a large degree of prosperity and sound progress during the past year with a steady improvement in methods of production and distribution and consequent advancement in standards of living. Progress has, of course, been unequal among industries, and some, such as coal, lumber, leather, and textiles, still lag behind. The long upward trend of fundamental progress, however, gave rise to over-optimism as to profits, which translated itself into a wave of uncontrolled speculation in securities, resulting in the diversion of capital from business to the stock market and the inevitable crash ... Fortunately, the Federal reserve system had taken measures to strengthen the position against the day when speculation would break, which together with the strong position of the banks has carried the whole credit system through the crisis without impairment. The capital which has been hitherto absorbed in stock-market loans for speculative purposes is now returning to the normal channels of business."
http://www.presidency.ucsb.edu/ws/index.php?pid=22021
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