[1] Following the Wall Street Crash of 1929, speculators became more cautious and reluctant about holding on to stocks for extended periods of time.
These bear raids allowed many Wall Street investors to make fortunes, for adequate regulation of inside information had not yet become established.
Kennedy eventually became appointed as the chairman of the U.S. Securities and Exchange Commission, a federal agency established by Franklin D. Roosevelt in order to investigate current speculative operations and prevent a downturn like the 1929 crash.
[3] During the time of the Kennedy Slide, the head of the American Stock Exchange, Edwin Posner, explained to reporters that "this definitely is not panic selling".
In its report, the SEC concluded that the downturn in the market was due to "a complex interaction of causes and effects—including rational and emotional motivations as well as a variety of mechanisms and pressures", which led to a "downward spiral of great velocity and force".
The end of the report labeled the market slide as an isolated, nonrecurring incident with precipitating causes that were unable to be confidently ascertained.
Kennedy's advisors pushed for all sorts of remedies, from reducing the margin requirement to announcing a tax cut of $5–10 billion to holding a "fireside chat" and discussing the health of the economy.
J. Paul Getty, an oil tycoon with large investments in Wall Street, addressed the press and explained, "When some folks see others selling, they automatically follow suit.
Many aspects of the Kennedy Slide of 1962 mirrored those of the Wall Street Crash of 1929, such as the detrimental mix of an extremely volatile stock market, fearful investors, and weak leadership.