Despite the risks, many believed the stock market would continue its upward trajectory. However, on March 25, 1929, a minor market crash triggered by the Federal Reserve\u2019s warnings prompted rapid sell-offs, exposing market weaknesses.<\/p>\n
Although banker Charles E. Mitchell briefly stabilized the situation with a $25 million credit pledge, economic indicators worsened, with declines in steel production, construction, and automobile sales. The market saw a temporary resurgence until a major crash began in October, following a prediction by financial analyst Roger Babson and the arrest of British investor Clarence Hatry for fraud.<\/p>\n
The Great Depression soon plunged millions into hardship, with unemployment skyrocketing from 1.6 million in 1929 to 14 million by 1933\u201425% of the workforce. Many resorted to desperate measures for income, while those employed faced falling wages and unpaid government salaries. Hunger and homelessness surged, with over 250,000 families losing their homes and many becoming \u2018hobos\u2019 in search of shelter.<\/p>\n