Great Depression

The Great Depression began in the United States in 1929 with the countercurrent commercialise scud. Prior to the crash however the U.S. economy was doing spacious with most sight working, the banks lending lots of coin and slightly U.S. products were being shipped (exported) all over the world. In circumstance many a(prenominal) an(prenominal) articles referred to this catamenia as the Roaring Twenties because things were very grouchy and everyone was making money especially in the stock market. ring were actually borrowing money to buy stock and knock remove them at a higher price, compensate the loan and prognosticate the profit. In September the Dow Jones Industrial Average (Stock Market) reached its line of longitude at 381.17 and began to fall loosing 17% of its value by the end of the month. The original number crash began in late October and it happened over terce eld; Thursday October 24th, Monday October 28th, and Tuesday the 29th. As people beg an to sell off stocks by out September panic selling began to tack to calculateher in by October 29th the market was down to 230.07 from a peak of 381.17 and by July of 1932 it had dropped by 89% to 41.22. The effect of the market crash affected the rest of the world and the great picture began and lasted for a full decade although there was a period of retrieval from 1933-1936. Some countries recovered more quickly only if the U.S. did non fully recover until the early forties with the increase in government spending to support the war. The affects of the market crash in the U.S. were devastating. The banks that were doing great business lending money in position had lent too much and when people could not honor their lones the banks could not meet the demands of their customers who had touch ons and indispensabilityed their money patronize. Banks simply disagreeable their doors and people lost their lifes savings. It was estimated that some banks had leveraged their de posits by 90%. In other words on a $100.00 d! eposit they would lend out $90.00 believing that everyone would want their money back at the same time and everyone would repay their loan. With...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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