the market was built upon loans from the banks. This picture represents how the stock brokers reacted when the stock market started to fail due to the over speculation of stocks. Stockbrokers. It was not only the over speculation of stocks but it also failed due to the marginal buying of stock thus, causing the stock market to crash. The effect that marginal buying had on the stock market was that people would use their credit to buy stocks instead of their own money. The money that was then put into the stock market started to show “growth” instead the stock was built on non-existent funds that were worth nothing. As people continued to buy stocks they started to go into debt. People felt as though the stock market was a quick way to get rich but really they were losing money and putting America into debt. “Stock prices continued to fall, and on July 8, 1932, the market hit its lowest point during the Depression.” (americaslibraries.org) It was due to the failure of the stock markets that people started to lose their jobs and go deeper into debt because they could not pay back the loans that they had borrowed from the banks. It is easy to see that the stock market was a major factor as to why the stock market crashed but, others believe that is was due …show more content…
The protective tariffs such as the Hawley- Smoot Tariff which set the highest tariff rates in American history in an attempt to boost the economy. Instead of the Hawley -Smoot tariff helping to stimulate the economy it hurt it because in response to the tariff other countries created retaliation tariffs. But, the Hawley-Smoot Tariff was not a reason as to why the United States went into a Great Depression. It did not help the Great Depression get better but, it did not start the Great Depression either. The Stock Market crash was caused by the failing of businesses and