The Great Depression

In 1929, the Stock Market Cash canceled the period of the economic boom after the end of World War I of the United State.

Why did it happen?

Stock prices dropped –> The buyer lost investment –> The person who  lent the buyer money to buy stock also lost his/her money –> both headed forwards bankruptcy –> Banks and businesses began to fail –> Unemployment rose

There are many factors that made/precipitated the stock market crash:

  • frenzied speculation,
  • the overpriced nature of stocks
  • the unevenness/unfairness of prosperity and the farmers’ depressed status,
  • rising in interest rates in England,
  • Psychological a desire to get rick quickly – was the most important factor.

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