Homeless starving families roaming the streets, billions of dollars lost never to be returned, and darkness and depression encompassing all aspects of life. This may sound like an impossible nightmare, but in reality millions of people suffered through these events thinking only of survival and how to get through the next day. What, could cause such horrendous events as these? Well, all of this was a result of what is known as the Stock Market Crash of 1929. In brief, the economy of the United States of America failed due to flaws within the market, and misunderstandings of its risk. Moreover, poor economic policies caused depression and financial turmoil, and took years of political reform to heal.
When looking at the overall effects and workings of the crash, one must first understand what caused it, and what conditions allowed for such cataclysmic event. The primary reason for these events, was the over speculation of stocks. That essentially means that stocks (a share of a company that can be bought or sold) were believed to be worth more than they actually were, and thus had inflated values. This over speculation and trading of inflated stocks was based off of an unsafe confidence in the market. Everyone within the time, believed stocks were completely safe and a guaranteed way to make money. Because of this belief, a plethora of people went to banks, taking out excessive loans, and investing this money into the market. Wannabe investors thought they would receive a large enough return from the market to easily pay back the loan and still make a profit. Banks were advised by the government not to give out loans that were based off of speculation, but they too were lured into a false sense of se...
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...gle moment in the time period of the stock market crash along with the resulting Great Depression. That is why I ask you the reader, to try and picture what your life would have been like if you had grown up during this time. It seems like something that happened thousands of years ago because of how unreal and different things were then. It’s almost impossible for someone in the modern world to picture starving families on the streets and whole towns comprised of makeshift huts to house all of those who have been effected. However, the reality is this. These events did not occur in some unfathomable time period in a place far away foreign place. The depression ended roughly seventy-five years ago quite possibly during the lives of our grandparents, and occurred within the United States. It is real, it happened, and that just proves that nothing is guaranteed.
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