ipl-logo

How Did The 1920's Qualifications To Take A Loan In The 1920s

301 Words2 Pages
bulb-icon

Recommended: Liberal reforms during the first world war

There was not as many qualifications in the 1920’s to take a loan from the bank as there is now. Back in the 1920s, basically anyone can take a loan from any bank without as many qualifications it takes to have now to take a loan out resulting to people constantly taking loans out without any regard to putting the money back. Many people who took out loans were not able to pay the bank back or did not have the jobs or working experience to work for the money and return it to the bank. The banks slowly lost money and stopped giving loans. Qualifications started to be a requirement to take loans, otherwise the banks would go broke and the federal government would have a big problem. This eventually added to the causes of the Great Depression.
Show More
Related
742 Words | 3 Pages

Due to the surge in sales factories began producing more and more items as the demand to have them sky rocketed in the Roaring Twenties. By 1929, when people began losing their jobs and had no way to pay their mounting credit debt to their bank. People's items began to be repossessed and when the stock market crashed people with loans that were supported by stock began to lose there homes and were forced to take to the street. Now that the stock market had crashed those who hadn't lost everything made a dash to their bank to withdraw their entire saving in an attempt to salvage what assets they had left. However more often than not the banks had no more money to dispense

Read More
448 Words | 2 Pages

Three of the main causes to The Great Depression involved the crash of the stock market, job loss and buying on credit. To begin with, the crash of the stock market was the starting factor that let to the downfall of many lives. The stock market was flourishing with investors but reduced economy by 60% over all (Document 1). Around 4 million Americans including many banks had invested large amounts of money in stocks hoping to earn gains (Document 3).

Read More
518 Words | 3 Pages

There were many factors that led to the United States to go into the great depression. For example, the main one was the crash of the stock market. After the stock market crashed. Many banks had to close, and many people that had their moneys in the bank, lost it all. Also the amount of loans and debts that were created do to world

Read More
1310 Words | 6 Pages

The causes of the Great Depression were the stock market crash,

Read More
426 Words | 2 Pages

This led to a depression in

Read More
798 Words | 4 Pages

Hayleigh Smith Donnelly US History 3 March 2024 What caused the Great Depression? What were some of the precursors to this? The Great Depression, starting in 1929 and lasting through the 1930s, was a worldwide economic depression that had a major effect on people everywhere. People were dying of illness and starvation, they were losing their jobs, their homes, and even members of their family because of the financial hardships the Depression put them through. Although the Great Depression was one major event, there were several causes and precursors that led to the end result of this catastrophe.

Read More
191 Words | 1 Pages

The "roaring" 20's allowed the banks to make a lot of money, so they invested it in expanding the business. When the economic prosperity of the 1920's was flooded with all the stocks people were buying, the system didn't have enough money in it to continue. It was only a matter of time before total economy failure, the stock market crash just sped it up. Everyone went to the banks for their money so they could pay their debts, but the citizens didn't know the banks used the people's money for investments, and lost all the money in the stock market crash. One by one the banks began to fail.

Read More
185 Words | 1 Pages

Therefore, the Great Depression was caused by the Stock Market Crash of 1929. The American people began investing in many useless things that were overpriced

Read More
585 Words | 3 Pages

During the Great Depression the unemployment rate went up, they were forced to eat at soup kitchens or go through garbage cans for food, and they even had to build shelter out of cardboard. The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them.

Read More
431 Words | 2 Pages

The average person did not have the money to buy all the needs and wants desired. The economy started to turn into an unstable one, due to the amount of money owed. During the 1920’s, it was very popular for people to purchase an item and pay it off at a later date.

Read More
651 Words | 3 Pages

However, the Great Depression darkened the economies

Read More
726 Words | 3 Pages

The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when

Read More
510 Words | 3 Pages

This led to six long years of depression for the United States of America, and is another great reason why Andrew Jackson, also known as “Old Hickory”, was one of the worst presidents the United States ever had in its great history of US

Read More
1930 Words | 8 Pages

What caused the Great Depression was when the stock market had crashed. When this crashed, it caused America to sell less and less goods. “In 1939, when World War II erupted in Europe with Germany’s invasion of Poland, numerous economic indicators suggested that the United States was still deeply mired in the depression. For instance, after 1929 the American gross domestic product declined for four straight years, and then slowly and haltingly climbed back to its 1929 level, which was finally exceeded again in 1936.” (Watkins, 2002; Johnston and Williamson, 2004) Because of this, this cause unemployment rates to go up, half of all banks go out of business and the stock market to lose its value.

Read More
780 Words | 4 Pages

There were a variety of causes that caused the Great Depression, but the main cause that started it was a decrease in spending. This led to production decrease because manufacturers and merchandisers did not want to have unused items just sitting on the shelves. In October of 1929 the stock market crashed. The United States stock prices had reached levels that could not be justified by sensible predictions of future earnings. The results of this were catastrophic.

Read More

More about How Did The 1920's Qualifications To Take A Loan In The 1920s

Related Topics

Open Document