Today we talked about the causes of the Great Depression and The causes of the Stock Market Crash. The causes of the Stock Market Crash were:-Overspeculation-Massive Fraud and Illegal activity-Margin BuyingFederal Reserve Policy-The effects of this were that:-investors and businesses lose millions-thousands of banks fail, saving are wiped out-businesses cut production, lay off thousands of workers-Unemployment rises consumer base drops further-Economic contraction in the U.S. spreads to Europe-The great depression sets inVideo:What is pooling?What did the federal reserve do for the situation?What causesd the crash?In 1929 all hopes converged in that one year. Everyone had an interest in the stock market. If a stock is in demand the price goes up if the interest goes down the price goes down. People thought that it was a huge new way to make a fortune. Everyone was fascinated by this. People started buying on credit.
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