Today in class we went over, once again, causes of the stock market crash. We went over line graphs that clearly showed when exactly the stock market crashed. Consumption-Production-Employments-Income. This cycle explains how the stock market went down.Causes of the Stock market crash- People started buying less products. People also bought products on credit and were going into debt. Banks were giving loans to the wrong people. They gave loans to people that couldnt pay them back. In this time period you were either rich or poor. The wealthy kept geting richer and the middle class got wiped out. High intrest rates kept people from buying products. Stocks were over priced. People relized it and stared selling.
Comments