What Caused The Great Depression Essay
The masses fill the streets where once cars and trucks would once have clogged them at this hour - many of them waiting in 1/2 mile long lines for a daily hand-out of food, while others comb the smoldering ruins of yesterday's bombed out strip-mall seeking anything salvageable that might enrich their meager lives.
The causes of the great depression was the stock market crash of 1929, bank failures stopped creating new loans, and the drought conditions in the Mississippi valley.
STOCK MARKET CRASH
On October 29,1929,black Tuesday investors traded shares on the New York stock exchange. Lots of money was lost America and other places around the world went down to the great depression the longest lasting economic thing in history. (americanhistory). …show more content…
BANK FAILURES
Throughout the 1930s over 9000 banks failed. Bank deposits were uninsured and therefor as banks failed people simply lost their savings. Surviving banks, unsure of economic situations and concerned for their survival had to do other things.( slideshare). (Britannica).
NOT CREATING NEW LOANS
Just so banks could survive during these times they had to stop being so willing to creat new loans. This exacerbated the situation leading to less and less expenditures. Because of this it was hurting the people who lost their loans.
LOST LOANS
Because the banks were handing out less stocks people had put 5% of their money in the banks lost it. Also the people who were stock holders had promised people money and now could not pay it back. So all the people were screwed because they didn’t have money to help with there farms or anything.
COULDNT PAY MONEY BACK
So the money that the banks had they loaned to stock brokers for the margin of loans,they used the savings people had deposited in the bank for these loans. The savings were not insured. So ever one was wondering how did 30,000,000,000$ just
The causes of the great depression was the stock market crash of 1929, bank failures stopped creating new loans, and the drought conditions in the Mississippi valley.
STOCK MARKET CRASH
On October 29,1929,black Tuesday investors traded shares on the New York stock exchange. Lots of money was lost America and other places around the world went down to the great depression the longest lasting economic thing in history. (americanhistory). …show more content…
BANK FAILURES
Throughout the 1930s over 9000 banks failed. Bank deposits were uninsured and therefor as banks failed people simply lost their savings. Surviving banks, unsure of economic situations and concerned for their survival had to do other things.( slideshare). (Britannica).
NOT CREATING NEW LOANS
Just so banks could survive during these times they had to stop being so willing to creat new loans. This exacerbated the situation leading to less and less expenditures. Because of this it was hurting the people who lost their loans.
LOST LOANS
Because the banks were handing out less stocks people had put 5% of their money in the banks lost it. Also the people who were stock holders had promised people money and now could not pay it back. So all the people were screwed because they didn’t have money to help with there farms or anything.
COULDNT PAY MONEY BACK
So the money that the banks had they loaned to stock brokers for the margin of loans,they used the savings people had deposited in the bank for these loans. The savings were not insured. So ever one was wondering how did 30,000,000,000$ just