Today we had blog discussion over the causes of the Stock Market Crash.Today we talked about the causes of the Stock Market Crash. Overproduction was a main cause of the crash because no one could afford to buy their products so they had to let go of their workers so that the business would not have to close down. Another cause of the Stock Market Crash was buying on margin. People were buying all of their stocks on borrowed money, and most of the time they could not pay back the loans or the price of the stock, People were mostly buying things on credit, but could not pay them back which caused the bank to foreclose their homes and valuables. Another reason was that the stock holders would become nervous if the company they had stocks in suffered. This made them all sell their shares for lower prices, so they didn't make any money at all. It would have been terrible to go through the Stock Market Crash.Causes from the Book:Overspeculation during the 1920'sOverproduction of GoodsBuying on Margin- stocks that were bought on borrowed money.Uneven Distribution of wealth in the 1920'sToo much borrowing from banksStock Prices grossly inflated; did not have "real" valueMassive Fraud and Illegal ActivityFederal Reserve Policy
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