Stock Exchange Causes

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The collapse of the United States of Americas (USA) stock exchange cannot be blamed solely on the government’s laissez-fair attitude. There are numerous reasons why the collapse happened and what caused the collapse. Although it can be said that these reasons were caused by the laissez-fair attitude, it was not the sole reason for the collapse. The other factors also play a large factor in the collapse of the stock exchange and the great depression.
The collapse of the stock exchange can largely be blamed on over speculation. During the roaring twenties almost every man was able to buy stocks on the stock exchange. This was due to the fact that he was able to get loans from the bank and use this money to buy stocks, which was seen as an easy way to make money as many people were doing this and making money. This lead to over speculation as share prices got higher and higher even though the company wasn’t worth as much. This led to professional investors selling their shares and recalling the loans they gave out. Due to this the investors that had over speculated had to sell their shares which meant that thousands of worthless shares were for sale but there were buyers. Although it can be said that government could have chosen to intervene but had chosen not to, due to their laissez-fair attitude, and prevented the collapse. The government cannot be solely blamed because banks and other investors had chosen to give loans out allowing the collapse. Over speculation is another main factor in the collapse of the stock exchange therefore it cannot be said that the governments laissez-fair attitude is solely to blame.
There are many other factors which add to the over speculation and cause the collapse. Some banks chose to buy stocks u...

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...ernment could have prevented the collapse of the stock exchange but they were unable to because they did not act soon enough due to their laissez-fair attitude.
The collapse of the stock exchange was due to many factors that built up and originated during the roaring twenties. There was a lot of over speculations which lead to a lot of people taking out loans and not being able to pay back, including banks that used up the money that had been deposited to them. This as well as the governments’ laissez-fair attitude led to the collapse of the stock exchange. The laissez-fair attitude cannot be solely blamed for the collapse but could possibly blamed for prolonging the great depression as no steps were taken to help the people as they felt the businesses would help end the depression and provide jobs but this did not happen and the depression lasted for many years.

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