The Disaster That Hurt Millions

The Stock Market crash caused the Great Depression by making investors and companies losing majority of their money. The stock market crash happened on October 29, 1929 and was caused by the trading and selling of 12.9 million stocks. The Great Depression lasted from 1929 to 1939 and was the worst economic crisis which caused many people to become unemployed, businesses, and banks started to close and fail. Also the depression challenged American people and families by putting them in economic and social issues. Millions of people and families lost their savings and many banks which failed in the duration of the

Many other stock holders were worried and more and more people started to sell. Prices dropped very quickly and panic had begun. Thousands of stock holders sold their shares. The market dropped like a stone. The US stock market collapsed completely.

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Going through all this just made him a stronger man. This gargantuan mess was all created because of the Stock Market crash of the 1930’s. This was a time when the huge stock market fell to the ground. The crash hurt so many American families including Braddock. Even though the Great Depression ended a while ago there are similar things that happened in the Great Depression that are happening in 2010.

The stock market crash of 1929 was a major turning point in history. It was an event that struck The United States hard, effecting both political and social groups. During the Stock Market Crash; banks were forced to shut down, people lost their entire savings they had in the banks, and upon losing their savings from the banks they eventually lost their businesses. Therefore causing a downward spiral in the economy of The United States and creating havoc. The Stock Market Crash of 1929 was a time sorrow due to loss of trust in the banks.

This lead to the biggest stock market crash in our history. The misdistribution of wealth and the stock market crash caused the economy to plummet (Modern). The stock market was bigger than ever in the 1920’s. Prices reached levels that people never dreamed of. At one point when the market was roaring in September 1929 forty percent of stock market values were pure air.

Because so many people had bought on margin, the economy suffered from a severe lack of activity, creating a nationwide depression. People also lost their savings, as a result of banks using deposits to buy stocks. Other causes of the crash include over-speculation and overreaction. Over-speculation, the act of valuing

The collapse of large and significant financial institutions like the Lehman Brothers propagated the economic crises. Investors withdrew over $150 billion from the money funds in the USA in two days after the collapse of the Lehman Brothers. This caused the money markets to get unstable thereby nee... ... middle of paper ... ...uest.com/ Laurence B., 2010. Research Foundation Of Cfa Institute, Scu Leavey School Of Business Research Paper No. 10-04.

Thousands flocked to the banks to withdraw their money. With so much output, and so little input, banks nation-wide began failing. In the first eight months of 1930, seven hundred forty-four banks went under. During the 1920’s only one percent of the population owned forty percent of the nation’s wealth. But when the stock market crashed, the rich entrepreneurs, and the lower class citizens alike, lost everything, and the unemployment rates soared.

Speculators who borrowed money from the banks to buy their stocks could not repay the loans because they could not sell stocks. This caused many banks to fail. Since bank deposits were uninsured before the 1930s depositors' their money, which in many cases was all that many people had. The stock market crash intensified the course of the Great Depression in many ways. Besides wiping out the savings of thousands, it hurt commercial banks that had invested heavily in corporate stocks.