The Collapse Of The Roaring Twenties

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The 1920’s also known as “The Roaring Twenties”, was a momentous time for America. People bought luxurious items that they did not have the money for; therefore placing it on credit. Buying stocks on margin, “borrowed money”, is how people invested in the stock market hoping to break the bank. The “magnificence” of this era was short lived. The effects of buying on credit and margin would soon jeopardize and manifest the lives of essentially every American. On October 29th, 1929 soon named Black Tuesday was the day the stock market crashed. Panic was stricken all over. This signaled the start of this morbid economic tragedy. The collapse of the stock market caused a household and business depression, it was the most prolonged and horrific American and world experience. By the end of 1929, stockholders lost $40 billion in paper value. Individuals who bought on credit and margin struggled to pay back their debt. Borrowers sold everything they had to pay back their liability, but countless individuals were unable to. Finally, our nation’s income fell severely, and banks closed down. T...

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