The Great Depression

great depression factors

• Buying on margin
• Credit buying
• Bank failures
• Worldwide economic problems

Buying on margin

• in the years before the depression people borrowed money from the banks to buy stocks with a vision of becoming a big speculator just like the bigshot

Bank failures

• after the crash the banks lost most of their investments that they used with the peoples money
• Bank runs was when the people rushed to the bank to withdraw their money before the banks ran out of money

Credit buying

• people bought they couldn't usually afford and couldnt make payments
• income goes into things they already bought not helping the economy

Worldwide economic problems

• Tariffs made world trade from Europe very expensive in order to support american made products
• american businesses that needed international trade would fail because their merchandise wouldnt sell
• tariffs just made prices go u

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