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AnswerIn the 1920's, there was a lot of artificial wealth created. Many people were rich on paper, but had no tangible holdings to back it up. Companies invested in each other and the stock market was artifically boosted. In October 1929, when citizens began a "run" on banks to withdraw their money, it was discovered that their money wasn't really there. This led to panic, bankruptcies, unemployment, foreclosures, etc.
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Related Questions

What was the era before the Great Depression called?

Roaring Twenties


When did the roaring twenties start?

The roaring twenties lasted through the entire decade of the 20s from 1920 to 1929. The era was characterized by the artistic, social and cultural factors that resulted from a sustained economic prosperity.


How did the roaring twenties end?

The Stock Market on crash that signaled the beginning of the great depression ended the roaring 20's.


What is a word that starts with the letter K that deals for the Great Depression?

well, i had a project that was a dictionary about the great depression AND the roaring twenties. i put the klu klux klan because during the roaring twenties, there was a lot of nativism, and anti-communist/anti-immigrant feeling, which led the the growth of the klu klux klan


How does this title the roaring twenties fit with the great depression?

The 1920s was called various names such as "The Jazz Age," the Age of Intolerance," and the "Age of Nonsense."


How was the great depression connected to the roaring 20s?

The Great Depression was closely connected to the Roaring Twenties, a period characterized by economic prosperity, consumerism, and speculation in the stock market. The rapid expansion of credit and overproduction during the 1920s led to unsustainable economic practices. When the stock market crashed in 1929, it triggered a chain reaction of bank failures, unemployment, and a drastic decline in consumer spending, culminating in the Great Depression. Thus, the excesses of the Roaring Twenties directly contributed to the economic collapse that followed.


Who wrote Roaring Twenties?

F. Scott Fitzgerald wrote the "Roaring Twenties" and he is also author of "The Great Gatsby". The Roaring Twenties were the nickname of the 1920's and the 1920's were a relatively prosperous time.


How did the Great Depression in the US begin?

A. The roaring twenties B. The western front C. The stock market crash D. The election of Franklin D roosevelt


What major event shaped American culture?

The Great Depression, WW1, WW2, Cold War, The Revolution, Civil War, and The Roaring Twenties, to name a few.


Why did farmers experience financial problems during the roaring twenties?

During the 1920s the farmers' debts increased as a result of the crash of the stock markets. This is the period in history which was known as the Great Depression.


In what time period was the great depression?

the twenties


What was the major cause of Great Depression?

Speculation was a factor. Banks, business, and people in general were spending money they didn't have to fit the lifestyle of the Roaring Twenties.