The Stock Market Crash

The United States parentage securities industry Crash in October 1929 tag the beginning of the abundant clinical depression. Background on the Great Depression The Great Depression was an economic slump in the United States and Europe that began in 1929 and lasted until about 1939. This was the longest and close to severe Depression in United States history. The Depression began with the fatal collapse of the Stock Market in October 1929. Stock Prices dropped the flog during the third and fourth hebdomad of October. But galore(postnominal) investors, in the main wealthy, held their stocks and thought that the prices would likely spirt up again and that it was on the nose an unlucky week for the securities industry. both(prenominal) change surface bought more stocks! unhappily though, three months before the roaring twenties came to a quiet halt, something unpredictable happened, something that the piece would never forget. Throughout that week, galore(postnominal ) people who could not sacrifice their stocks because they had put uping on tolerance, or only give a portion of the stocks expenditure sold them, fearing the stocks would fall further. The jerky sell left the stocks in possession of the banks, thus deviation the money that was to be owed for the banks. The wishing of money put a huge strain on the banks.

Not only did many banks own stocks in the Stock Market, but now that the market chock uped many banks could not even afford to pay the amount of money owed from the loaner that had paid On shore, and many banks consequently fai conduct. The failure of so many banks, have with the nationwide loss of confidence in the economy led to reduced spending and demand, thus less w! orkers were needed, and hence many jobs were lost. (Cobblestone, Page 6) The Stock Market crash sparked a downward(prenominal) spiral in the economy of the United... If you regard to get a full essay, order it on our website: OrderEssay.net

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