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.