Cause of the stock market crash.-People didnt need to buy the things that had been buying in the years before.. so they didnt need those things anymore because they still had them. Also companys werent recieving as much income so they had to fire people to keeo from going bankrupt which in turn led to less people buying stuff...its like one big circle. Federeal Reserve systm raised interest rates. People quit barrowing money and couldnt buy the things they wanted. People were in debt from buying on credit and so they couldnt buy anything. Company's were over producing their products...People were buying stocks on margain. Too much barrowing from banks. Company's produced too much goods so in turn they went bankrupt and people lost their jobs. Uneven disrubution of wealth. Stocks didnt have real value.Federal Reserve Policy or lack there of.Effects-Great Depression set in.bankruptcy.People lost jobsBanks closed1.)causes2.)Story of SMC3.)What is pooling?4.) what did the federal reserve do.
Comments