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- Words:
- 2111
- Submitted:
- Tue Oct 27 2009
- Mark submitted by Author:
... In October of 1929, the US stock market collapsed. This caused the American economy to collapse. As a result the USA entered a period of depression that destroyed much of the prosperity of the 1920's.There were many causes as to why this happened. Such as poor distribution of income between rich and poor, over production by American industries, the actions of speculators, no export market for US goods, the decision by the banks not to support share prices, the loss of confidence and the attitude of ''Laissez-Faire'' caused alot of economical problems for the USA at the time. This led to the great depression of the 1930's. The first main cause was speculation. Speculation was a type of gambling, by this time around 600,00 new investors were speculators. But speculators didn't intend to keep their shares for long instead, they borrow money to buy some shares, then they sell them again
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