H.H. Holmes

What weaknesses existed ben cancel outh the surface of the general prosperity of the 1920s and how did these weaknesses add about the grand depression. While the 1920s were a start up on with of great prosperity for most of the States it had several key problems that finally guide to the Great Depression. During this clipping industry and cities were well-heeled and experiencing great profits exactly the farmers that had once been a risky piece of music of the sparing of the U.S. were experiencing a time of great hardship. The economical prosperity of the time was so great in the 1920s that many another(prenominal) large number believed that it would continue. But this thought and the lack of standard(a) on the var. commercialise and big businesses led to the argument market crash on Black Tuesday in 1929. At the time only 200 companies controlled almost half of the organic merged assets. And because these few companies controlled so a lot of the w ealth of the States that it lead to the stock prices of these companies to go up exponentially. This in influence led to many small investors putting their life go up egg into stocks. All this investing led to false gains and hyperbolic the prize of stocks but in the second half of 1929 populate began to rat off the stocks in a mass hegira and this led to the stock market crash.

The Stock Market break in 1929 was one of the main causes of the Great depression but was non the only one. Another cause was the failure of over 9000 banks in the 1930s. These banks had been loaning money to muckle to invest in the stock market and after the crash people didnt eat up the money to p ay back the banks and because the banks had ! lost so much money they could not pay back the people who had been relieve money in the banks. This lead to even more hardships to the people who lost their money when the banks failed, and because of this loss of profits banks were likewise grudging to make loans to people. Another cause of the depression was because of the uncertainness of the economy people were being more careful...If you want to get a full essay, order it on our website: OrderEssay.net

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