Wall Street Crash Of 1929 Essay
The Boom Years (also known as the roaring twenties) were a prosperous time for all Americans .This same prosperity led to the collapse of the Wall Street stock market, which started the great depression. There are many causes to the Wall Street crash of 1929 in Russia. This includes an overproduction of goods, bank failures, deflation, a credit boom in the 1920s, the very famous buying on the margin and other causes.
October 24 which is known now as Black Thursday was the day where Americans had rushed to sell their shares; 13 million shares were sold and on Black Tuesday 16 million shares were sold and people were selling them at an even lower price than before. This marked Wall Street's crash and the causes were very evident
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The "easy credit "of the 1920s.these people were allowed to borrow money they couldn't pay back. During this period there was a very high increase in the amount of bank loans and credit. The lack of government control meant people were free to purchase on credit which led more people to purchasing stocks on credit
The banks as well were also at fault because they would loan money to people who didn't have money and wanted to speculate on the stock market and buy on the margin so when the stock market crashed, the people could not pay off their loans and the banks had no money to give the people who deposited money. This led to banks being forced to close down and families losing their life savings
The social impacts of the Wall Street crash were a nightmare for those who had no hand in its causes. Traders had a reduced amount of demand because no one wanted their goods, 18 000 farmers at the end of 1932 had lost everything and had gone bankrupt, this statistic also lines up with the fact that 1 in 20 farmers were evicted . Prices of houses plummeted by 80% of their original value
There was a wide spread drought affecting areas such as Texas and Dakotas . the soil became eroded and the high winds created the terrible dust storms , this area was soon know as the dust
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