During the depression, there was not just one particular reason for the depression, yet there were several events that took place and led to the cause of this economic crisis known as the Great Depression. The stock market crashing, banks closed, the federal government reduced taxes, but the most important factor that affected the rise in stock was credit. When the banks cut back on lending things began to go downhill from there, areas began to see severe depression. The industrial areas also, they were beginning to slow down, so much of the boom was caused by the buying of goods, and the economy had come to a halt. Last, the reason was problems in Europe. Germany was faced with problems that both countries were facing, like the decline in