John majors government came into office after the downfall of Margret Thatcher, which ultimately created divisions within the party. Not only did the party suffer from the internal conflict but also faced the problems of the recession after the ‘Lawson boom’. In order to stabilise the economy he joined the ERM getting a good deal but ultimately resulting in ‘black Wednesday’ causing Major to raise interest rates to 15%. This was political suicide and he soon lost the support of the press we had once relied so much on to get re-elected in 1992. The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess.
This means that the prices for stock were too high, far higher than they were really worth, then they fell drastically. People who had borrowed money to buy high-priced stocks (intending to sell the stocks at a profit and repay lenders), went bankrupt. That’s further expounding on what I said about buying on margin. Black Tuesday also marks the beginning of the great depression (Regan3). Living conditions during this time were unsanitary and horrible.
Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
However it seems that when he promised this Lloyd George failed to note that there was a grim economic situation in Britain that threatened to thwart his scheme known as Reconstruction. The 750,000 Britons that were killed at war affected the economy in a very negative way, whilst the 1.6 million were wounded needed care and this was a priority. To add to these problems Britain were in huge war debt to the USA and Britain’s own debtors were failing to pay up. These problems meant that government spending had to be slashed by 12% in the Geddes Act, which meant that Reconstruction could no longer go ahead. This was the main factor in Lloyd George’s fall as the British people felt betrayed by their leader, they felt that Lloyd George and the coalition had lied to them and made promises that they failed to deliver on.
Aside from reducing state revenues for overseas expeditions, the domestic policies of Philip II further burdened Spain and would in the following century, contribute to its decline. This caused inflation and a high tax for all the workers under his rule. The Spending of all this money lead to Spain's first bankruptcy in 1557 due to rising military costs. This eventually led to a failure in leading his people, and it was his debt that truly ended his reign. (http://www.newworldencyclopedia.org/entry/Philip_II_of_Spain) (Spielvogel,456, The Human
Ethan Latson Jr. Miss. Casertano Eng 9 B/ block 1 4/12/2014 The Great Depression The Great Depression was the most tragic moment in history because of the devastating impact it had on the lives of Americans. On 1930 the stock market started going downhill very fast. Banks were not established well enough,as well as President Hoover’s lack of trust in the government, and because people debt were so great they could not pay it off. Many lives were lost because of this.
On Black Thursday, The Wall Street Crash of 1929, October 24 also known as the Great Crash was terrible, it was the worse stock market crash ever. The market crash was one of the major causes that led to the Great Depression. There was a huge crowd of people trying to withdrew there life saving but couldn't. They were left with loans and debt they couldn’t pay. Two Months after the crash , stockholders had lost more than $40 billion dollars.
Stock prices hit rock bottom and wild selling left banks with little in reserves to stabilize. Banks had to shut down because they had no more funds. The Great Depression was the most devastating aspect of the roaring
The subprime mortgage crisis was the initial cause of the 2008 financial crisis, which then led to the worst recession since the Great Depression. (2) Many Americans felt the pain when those introductory adjustable rate mortgages reset to reveal higher payments that they could no longer afford. Banks, also, felt the stress as the word spread about the sheer volume of defaulted loans. As home prices continued to decline, without any hopes of a market turn around, both home owners and financial institutions where in a poor situation. In a proactive approach to the foreseeable future, on December 20, 2007, former President Bush signed into law, the Mortgage Forgiveness Debt Relief Act of 2007.
But what was the cause of it all? Many economists argue on what the highest contributing factor to the crash was, but most agree that it was America’s lack of leadership in the global economy. There were many ways that the United States government went wrong that were the root of the downfall, such as; the misuse of the Gold standard, the trade restricting tariffs and protectionist policies that were imposed in the 1920’s, and the number of American banks and the bankruptcy crisis all were major factors to the Great Depression. America gained control of the global economy from Britain after the war, and were unable to keep a constant flow of gold and stability in their country, and consequentially lead to the Great Depression. The gold standard was developed to have a steady exchange rate of currencies, as well as a way to back up domestic currency reserves.