The Cause Of The Stock Market Crash Of 1929
Introduction
The causes of the Stock Market Crash of 1929 vary between many different factors some of which have not been proven or they are not sufficient and cannot be claimed as valid. The Stock Market Crash of 1929 was a cause of the Great Depression and was the biggest economic disaster in the stock markets ever. The crash revealed a lot of things about the economy during the time period of 1929. There were many different causes of the stock market crashing, but these are believed to be the main reasons that this event occurred.
Lack of Government
The first cause of the stock market crashing was the lack of Government in the planning and other factors of the stock market. One of the reasons that caused the stock market to crash was the lack of Government involvement in planning. The Republican Administration of Warren G. Harding, Calvin Coolidge and Herbert Hoover embraced a laissez fraire philosophy, meaning they would let things just take their course and not worrying about it. Warren G. Harding, Calvin Coolidge and Herbert Hoover did not attempt to fix or even attempt to fix any aspects that maybe could end up effecting the market. Other than the lack of government involvement, there was …show more content…
The stocks were purchased and sold in stock markets such as the New York Stock Exchange. Since the stocks were such a big source this caused the long boom in the stock market. During this time period from 1920-1929 The stocks quadrupled in value, this would lead to more people buying the stocks. Many of these people were sure that the stock market would be a great way to make money, so they would purchase a whole lot of stocks without any worry. The only bad part about these huge purchases, was that the structure of the stock market couldn’t handle the huge amount of investments coming in. This would ultimately lead to the stock market just collapsing on
The causes of the Stock Market Crash of 1929 vary between many different factors some of which have not been proven or they are not sufficient and cannot be claimed as valid. The Stock Market Crash of 1929 was a cause of the Great Depression and was the biggest economic disaster in the stock markets ever. The crash revealed a lot of things about the economy during the time period of 1929. There were many different causes of the stock market crashing, but these are believed to be the main reasons that this event occurred.
Lack of Government
The first cause of the stock market crashing was the lack of Government in the planning and other factors of the stock market. One of the reasons that caused the stock market to crash was the lack of Government involvement in planning. The Republican Administration of Warren G. Harding, Calvin Coolidge and Herbert Hoover embraced a laissez fraire philosophy, meaning they would let things just take their course and not worrying about it. Warren G. Harding, Calvin Coolidge and Herbert Hoover did not attempt to fix or even attempt to fix any aspects that maybe could end up effecting the market. Other than the lack of government involvement, there was …show more content…
The stocks were purchased and sold in stock markets such as the New York Stock Exchange. Since the stocks were such a big source this caused the long boom in the stock market. During this time period from 1920-1929 The stocks quadrupled in value, this would lead to more people buying the stocks. Many of these people were sure that the stock market would be a great way to make money, so they would purchase a whole lot of stocks without any worry. The only bad part about these huge purchases, was that the structure of the stock market couldn’t handle the huge amount of investments coming in. This would ultimately lead to the stock market just collapsing on