Many historians believe that the immediate cause of The Great Depression was the Stock Market Crash in the fall of 1929. That event occurred on October 29, 1929; also known as Black Tuesday. It also marked the end of the era known as The Roaring Twenties. On that day stocks plummeted to an all-time low, causing mass devastation. However like history has shown, a time of economic prosperity, like the Roaring Twenties, result in a depression.
The economy plummeted and everyone felt the effects of it .The severe downfall of the American economy in the 1930’s known as the Great Depression was the result of speculation and installment buying, income maldistribution, and overproduction throughout America. After the roaring 20’s, speculation and installment buying drastically increased
“Irrational exuberance in the housing market led many people to buy houses they couldn't afford, because everyone thought housing prices could only go up.” (useconomy.com). During 2006, housing prices started to decline. Many people took out loans with very little money down, and they had to foreclose on the house because if they sold it, they would not get enough money back. With the foreclosing rate increasing, many banks began to freak out because they were going to face huge losses. Around August of 2007, banks become afraid to loan money out due to the fact that they did not want to suffer from losing money yet again.
After the crash of the stock market, banks began to immediately feel the effects. Many people out of fear of losing their lifesavings pulled all their money out of their bank accounts. This reaction to the crash caused banks to lose money fast and they scrambled to get people to pay off debt. Not before long, many banks failed and went out of business, but
(Rothbard &Newton, Intro) During this time Herbert Hoover was president and the American culture was spiraling out of control. Massive bank failures occurred more and more each year causing almost everyone to fall into major debt. People soon lost many of their loved items, such as their homes. Those who were forced to the streets either lived in areas known as
The Great Depression was the longest lasting economic decline in the history of the United States. After the stock market crash of October 1929, the Great Depression followed. The event caused Wall Street to go into complete dismay, and wiped out millions of banks. For the next decade, social fabric was changed as well as the role of government. For example, spending was lessened and investment was dropped.
When the stock market collapsed on Wall Street in October, 1929, it sent financial markets worldwide into a meltdown this was tragic for the German economy. The German economy was vulnerable because it relied on loans from America and exports to fuel it. German workers were laid off. Along with this, banks failed. Inflation soon followed making it hard for families to purchase expensive necessities with devalued money.
Most Eastern European states experienced economic crisis because the previous centralised Soviet economy had failed. As historian Mark Kramer states the “collapse of communism especially for Russia was the greatest catastrophe of the century” because the rebuilding of the economy through capitalist reforms left millions throughout the former Soviet Union unemployed. An example is people who had previously worked in the arms factories lost their jobs because the Soviet Union was no longer trying to keep up with America’s
When the stocks fell many people that became speculators and got rich were broke and penny less with just the end of a business day on Wall Street. The fall of wall street make a major impact on America, it kicked the united states into a major depression. Thousands of men and women were out of jobs, no food to eat and now real shelter to call their own. The country was reduced to almost nothing. With the help of president hover and his power to speak to a country about not giving up and to keep pushing for the mark of becoming a great country with his plan of a
Everybody knows you're punished for doing something wrong or making a mistake. We're not talking spilled milk here, were talking about people's lives and millions of dollars that is being wasted. Many people and families lost their life savings, millions lost their jobs, and the whole economy crashed because of the actions of these narrow minded people, yet they have not been served justice and still have the large sums of money they got during the economic crash. It's not fair to these people because it's not 100% their faults that they lost their homes. The government tried to bail out the banks, after the bank made a lot of bad loans.