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Why Did The Stock Market Crash Of 1929

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Recommended: American history chapter 13 the great depression

The stock market crash of 1929 led to what is known as the lowest point in history. This is most commonly known as the Great Depression. During the mid to late 1920s, the stock market expanded rapidly in the United States and continued into the first six months of Herbert Hoover’s inauguration period. The expansion of the stock market was called the “Hoover Bull Market” because the prices of the stocks were increasing and expanding. The public took advantage of this and went to brokers to invest their money in securities. Billions of dollars were drawn from banks to invest in the stock market and hundreds of loans were being given out. This decreased the Dow Jones Industrial Average to 381 points. No warnings were given and people continued …show more content…

Many countries had looked to America for financial aid throughout the war, and America gave them loans. After the war, the Allies could not repay these loans and they looked to Germany and Austria for their reparations. However, Germany and Austria’s economies were badly affected by the war and they could not pay their reparations. “The Allies owed large amounts of money to U.S. banks, which had advanced them money during the war effort. Unable to repay these debts, the Allies looked to reparations from Germany and Austria to help. The economies of those countries, however, were struggling badly, and they could not pay their reparations, despite the loans that the U.S. provided to assist with their payments.” This placed a huge amount of pressure on American banks to maintain stability and wait for the countries to repay their …show more content…

“The largest increase in the overall suicide rate occurred in the Great Depression (1929-1933)—it surged from 18.0 in 1928 to 22.1 (all-time high) in 1932 (the last full year in the Great Depression)—a record increase of 22.8% in any four-year period in history.” The people had lost their jobs, their houses, their source of income, and many of them ended up losing relatives or friends due to poor living conditions and starvation. Furthermore, people couldn’t seek medical help for their mental health, because going to the doctor’s office was too expensive and no one had money they could use to afford a doctor’s

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