nt that you only paid 40% of the value of the stock. Investors bought borrowed money from their brokers, who went to the banks for that money. When stocks failed and investor failed to pay the brokers back, the money was permanently lost. The banks simply didn't have the money and were forced to go bankrupt.Adding to the crash was Americas slowing economy. The consumers desire for goods went down, as Americans became satisfied with what they had. For example, radio and television production didnt continue to rise in sales because, you can only own so many radios and television sets before you realize that you have enough. This in turn affected the companies and the workers that produced these items. This was the beginning of a downward spiral.The crash of 1929 brought the roaring twenties to a premature end, as those who had put their trust into the strength of the economic system lost everything. As the growing bubble of the stock market suddenly stopped some of the wealthiest people in our country instantly became paupers. Of coarse as a direct result of the crash, the economy weakened and unemployment skyrocketed. Now as to whether the crash was the case of the great depression is still strongly debatable. Since the great depression happened after the 1929 stock market crash, many people blamed it for the economic collapse. Some held President Hoover responsible, others targeted the brokers, bankers, and businessmen. Others still say that the cause of the great depression could not be credited to one individual or to a group of people. It seems unlikely that the collapse of stock prices would have been sufficient enough to lead the U.S. economy into economic depression.The foremost question in most people's mind when thinking about the stock crash is, can and will it happen again? When asked this simple question most experts agree that in our present economic situation something like The Depression couldn't develop. This is because ...
