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The Great Depression was the 'pop' of the speculative bubble that swelled due to loose credit policies during the 1920s. These policies were implemented as a political favor mostly to Great Britain, who was desperate to stop their outgoing flow of investment-backing precious metals. When the bubble popped, there was a stock-market crash due to the massive and sustained sell-off, followed by a run the on banks; these things tightened up credit that then choked off business and enterprise.

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14y ago

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