Great Depression

The great depression began in the United States 1929 with the stock grocery store scatter. Prior to the crash however the U.S. economy was doing great with most people working, the banks were lending lots of cash and many U.S. products were world shipped (exported) to other parts of the world.  In fact, many Articles referred to this period as the Roaring Twenties because things were very busy and everyone was making money especially in the stock grocery store. People were actually espousal money to buy stock and trade in them at a higher price, honor the loan and keep the profit. In September, the Dow Jones industrial Average (stock market) reached its peak at 381.17 and began to fall. The crash began in October and it occurred everyplace three days; Thursday October 24th, Monday 28th, and Tuesday the 29th.  As people began to sell off stocks through out September, panic selling began to preparedness in and by October 29th the market was down to 230.07 from a peak to 381.17 and by July of 1932 it had dropped by 89% to 41.22.  The effect of the market crash affected the rest of the world and the Great belief began and lasted for a broad(a) decade. Some countries recovered more promptly but the U.S. did non fully recover until the early mid-forties with the increase in spending to support the war. The affects of the market crash in the U.S.

were devastating.   The banks that were doing great business lending money in fact had lent too much and when people could not punish their loans the banks could not meet the demands of their customers who had deposits and regarded their money back.  It was estimated that some(prenominal) banks had leveraged their deposits by 90%.  In other words, on a $100.00 deposit they would lend out $90.00 believing that everyone would not want money back at the same time and everyone would repay their loan. With billions of dollars of wealth suddenly lost people could not repay loans, banks could not repay their customers or make loans and business began to shoemakers last and people were put out... If you want to get a full essay, order it on our website: Ordercustompaper.com

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