Causes Of The Great Depression

“After 1929, so many people had been traumatized by the stock market crash that there was a lost generation.” by Ron Chernow. On October 29, 1929, Investors exchanged approximately 16 million offers on the New York Stock Exchange is a single day. Billions of dollars were lost, wiping out a large number of investors. They named the day as “Black Tuesday”. The Great Depression started from that day. Production of goods was declined and unemployment was hitting the roof. How did the stock market crash? There is no fact that the price of some stocks had crossed the roof that could not be justified. Things of the market were really unstable. But it collapsed all stock, because of being extremely overpriced. The share trading system crash took

However, in early 1930 there was a point of happyness. The fortunes of the economy and the market was on it way up. As stock prices had nowhere to go but up, so there was huge recovery during succeeding weeks. Overall, costs kept on dropping as the United States drooped into the Great Depression, and by 1932 stocks were worth just around 20 percent of their reason in the mid year of 1929. The share trading system crash of 1929 was not the only reason for the Great Depression, but rather begin to expand the worldwide financial crash of which it was also reason. By 1933, about portion of America's banks had died, and unemployment was moving toward 15 million people, or 30 percent of the workforce. Many people believe that stocks were overpriced and the crash brought the share prices back to a normal level. A number of people believe that fraud and illegal activity was also one of the causes of the 1929 Crash. However, evidence revealed that there was probably very little actual insider trading or illegal

Additionally, beginning from the earliest starting point of 1929, the interest rate charged on broker loans rose extremely. This policy reduced the amount of broker loans that came from banks and lowered the conversion of nonfinancial and other corporation that financed brokers and dealers. It took over 25 years for the DJIA(Dow Jones Industrial Average) to get back to the highs of the 1929 market, as the U.S. economy suffered through what we now call the Great Depression. Major new changes were made by the following dangerous crash of the 1920s in an effort to prevent the same situation from happening again. As Roosevelt becomes the new president, his first few months began to active recovery and dragged the securities market along in its wake. However, The depressed stock market as a whole was heavily below even 1928 price levels. Since both business profits and investment were very depressed during the 1930s compared to the levels that had been achieved during the booming 1920s, it is not surprising that the market as a whole failed to stage a more healthy