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Did The Government Create The Stock Market Crash Of 1929

2606 Words11 Pages

Vincent York
Professor Naughton
ENG 102
27 April 2023

Did The Government Create The Stock Market Crash of 1929 To start with, something that has been a controversial topic and is known to be the start of one of the most substantial economic shifts in our human existence is the stock market crash of 1929. The important thing to know about this time was that it was the decade of the Roaring 20s and a lot of people at the time were borrowing money that didn't exist at banks. The market crash itself was also known for creating the great depression and several years of severe economic downturns. The outcome of the stock market crash of 1929 though had shown the United States' vulnerability in the economy and brought to light the Security and Exchange …show more content…

This could be speculation as many of the government officials that had worked for the FEDs, that was in charge of the market and regulation on the market had known of the possible risk at the beginning of 1929, almost 6-8 months before the market had crashed in October. The federal reserve was the main government agency that had been involved in the stock market crash. This agency had been in charge of the money supply and the banking industry system. Throughout this paper, there will be around four points made about the FEDs being involved in the market crash, Speculation denial by the FEDs, the over-burrowing allowed by banks, and the broker strategy that led to their own …show more content…

The crash had set more of a standard and allowed us to get a better understanding of the economy and how it should be run. In order to completely understand how the FEDs were involved in the destruction of the stock market crash, you need to look at the data and knowledge they had of the downtrend and inflated prices. The Federal Reserve had known knowledge that there could be an issue with the market, but instead of putting that information out to the public, they tried to revive the market or de-escalate the situation. The FEDs also played a huge part in trying to deny the speculators that were saying the market isn't really as solid as they said it was. Most of the time they just denied the information and told the public what they wanted them to hear and not what was actually happening. Furthermore, the banks had not helped the situation, they were way over loaning to people and to brokers themselves. With the banks overloaded on loans being faulty, they had driven themselves into a financial breakage and brought bankruptcy to themselves. Lastly, brokers had thought to be a foolproof strategy as they were

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