What caused the Stock Market Crash of that preceded the Great Depression? | Investopedia

Causes of the Stock Market Crash The 's were a time of unbelievable prosperity. The stock market was going through the roof and the United States seemed to have the formula for limitless prosperity.

However, the same formula that generated all of that profit would also be the cause of Black Tuesday. Investment during the 's was based on the unstable basis of margin buying. Investors bought borrowed money from their brokers, who went to banks for that money.

When stocks failed and investors needed to default, average earnest money money was permenantly lost. However, adding to the crash of '29 was the slowing economy. The off the stock market crash of 1929 causes for consumer durables expensive items refrigerators, radios, and automobiles went down as Americans became satisfied with what they had.

Stock Market Crash of - Facts & Summary - gedyfej.web.fc2.com

This in turn affected the companies and workers that produced these items. A downward spiral was set in motion.

What caused the Stock Market Crash of that preceded the Great Depression? | Investopedia

Causes of the Stock Market Crash The crash of ended the seemingly infinite prosperity of the s. Millionaires had become paupers overnight.

Stock Market Crash

Those who believe in the strength of the economic bubble and invested everything they had lost everything they had. Of course, the economy weakened and the unemployment skyrocketed. The Great Depression had begun. People Events Inventions Art Literature Music Entertainment Fads and Fashions Home.