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Why the stock market crash as the cause of the Great Depression is a misconception?
Wiki User
∙ 11y ago
The Stock Market Crash of 1929 did not cause the Great Depression but was an indicator of the underlying economic problems that went unnoticed or ignored during the 1920s. There was no governmental regulation of banks or the Stock Market to prevent buying and selling of stock that was either not listed at a price reflecting the actual value of the company or of letting the buy and sell quantity determine the cost of the stock. Banks were permitted to gamble with depositor's money to buy stock on the stock market. Many businesses listed on the stock exchange did not exist or existed only on paper. The true value of many businesses on the exchange were not public or listed accurately. Too much borrowing (buying on margin) allowed brokers and lenders to get in way over their head. As the economic problems started to effect the overall economy, the market collapsed.
Wiki User
∙ 11y ago
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Which was a direct cause of the Great Depression?
the stock market crash
Where when and why did the Great Depression begin?
In October of 1929 with the crash of the stock market.
What were the immediate causes of the Great Depression?
The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.
Did the stock market crash begin the Great Depression?
Yes, the stock market crash did begin the great depression but it wasn't the only cause. The depression was also due to the tariffs/war debt policies, factories producing more than consumers demanded, farm sector crisis, easy credit, and unequal distribution of income. The stock market crash just tipped it all off.
What the was cause of the Great Depression?
The Great Depression refers to the economic downfall that took place before and during World War II. This was due to a severe lack of jobs and the crash of the stock market
Which was a direct cause of the Great Depression?
the stock market crash
Where when and why did the Great Depression begin?
In October of 1929 with the crash of the stock market.
What were the immediate causes of the Great Depression?
The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.
What was a cause of th great depression?
The Wall Street Stock Market crash of 1929.
Which response to the stock market crash of 1929 helped cause the great depression?
production decreased
The main cause of the US's Great Depression?
The most popular belief of the cause of the Great Depression is the stock market crash of 1929. Economist still debate about the other causes. Excess speculation in the stock markets added to the causes of the depression.
What effect did the Great Depression?
the great depression affected just about every country by U.S Stock Market crashing cause a lot of other shared and stock markets to crash
Did the stock market crash begin the Great Depression?
Yes, the stock market crash did begin the great depression but it wasn't the only cause. The depression was also due to the tariffs/war debt policies, factories producing more than consumers demanded, farm sector crisis, easy credit, and unequal distribution of income. The stock market crash just tipped it all off.
What the was cause of the Great Depression?
The Great Depression refers to the economic downfall that took place before and during World War II. This was due to a severe lack of jobs and the crash of the stock market
Did Wall Street stock market collapse of 1929 led to the Great Depression true or false?
True, it was a cause of the Great Depression.
What country did the great depression effect?
the great depression affected just about every country by U.S stock market crashing cause a lot of other shared and stock markets to crash
What was one cause of the stock market crash of 1929 and the Great Depression that followed?
There were many economic causes of the Stock Market Crash of 1929. Over speculation in the market was not regulated by the government. Some businesses were over-rated in value so that stock prices would rise. Many Americans purchased stock on credit. This was known as margin buying. Consumers often did not have the cash on hand when stock brokers called in the "loan." Banks were permitted to speculate in land and the stock market with little government regulations. High tariffs and war debts helped spread the economic depression world wide. The Stock Market Crash of 1929, while not the cause of the Great Depression, signaled the beginning of the Great Depression.
