What Were The Causes Of The Stock Market Crash In 1929

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What were the causes of the stock Market Crash in 1929?
During the 1920s many people were buying stocks. Stocks in public companies was getting sell and raise in price, many people was wishing that buy stocks can make them more wealthy and earn money. Insane people was going crazy in buy and selling stocks for overly high prices. “As stocks climbed in price, many Americans believed that they could amass a tremendous fortune”.(Ohio History Central) In 1929 the United States Stock Market crashed. The stock market crashes from many reasons, the stock prices is going extremely high and overprice, the federal government raises the interest rates, and many other reasons. Before the stock market crashes, many people were going crazy to buy the stock, which makes stock is going wildly overpriced. Than people is trying to self the stocks they have for high amount of money …show more content…

“Over two days, the value of companies being traded on the stock exchange fell almost 13 percent on Monday and another 12 percent the next day. That day became known as "Black Tuesday."” (Ganzel) After the stock market crashes in 1929, many factories and business was forced to close down. “The crash frightened investors and consumers. Men and women lost their life savings, feared for their jobs, and worried whether they could pay their bills.” (Richardson) Many United States Banks was closed and failure. Many people were going to banks and take all the money they have in banks, which cause the bank running out of cash. If the bank is failure or close that means the people that was saving money in the bank willlose all the money they have in that particular bank. After the crash of stock market, in the 1930s around nine thousands and maybe more bank were shut down. People were losing job, factories and business were close down, banks were close down, these factor have become a part of reason for the Great Depression in United

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