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How Did Speculation Cause The Great Depression

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Speculation was a huge factor in causing the stock market crash of 1929 as it meant that people were to buy stocks of large risks and regular people were able to buy stocks that they couldn’t afford by being able to borrow large amounts of money from banks. Secondly, individual manipulation of the stock market was a significant factor in causing the depression as the wealthy would buy a large amount of shares, increasing the stock price and selling all the shares. This caused an unfair distribution of wealth as the rich stayed rich and the poor stayed poor. This problem was solved by issuing the Emergency Banking Crisis in 1933 and Security Exchange Commission in 1934. The Securities Exchange Commission provided a framework which tacked speculation

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