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The Wall Street Crash of 1929 had devastating effects on Germany, exacerbating the already dire economic situation following World War I. As the U.S. economy collapsed, American banks withdrew their loans to Germany, leading to a severe financial crisis. Unemployment soared, and hyperinflation returned, destabilizing the Weimar Republic and contributing to widespread social unrest. This economic turmoil ultimately facilitated the rise of extremist political movements, including the Nazi Party.

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