The reason for the credit crunch is the Economic crisis. All banks & financial institutions are stuck with extraordinary amounts of dubious debt & derivative products which they cannot sell. Hence they are short of cash which in turn has caused the credit crunch.
One of the causes for the Economic crisis are the banks who went on a loan lending spree to everyone they could find. They lent even to people who dint have enough income to pay their monthly mortgages...
So to an extent Banks can be blamed for the Stock Market crash. They aren't the only reason but they are also part of t
AnswerWhich stock market crash? Oh, never mind.. the answer is the same for all of them - sudden contraction of money supply by a major bank. Economic crises in 1907 and before were caused by major European banks. Since the creation of the Federal Reserve they have been the ones with enough power to create this economic turmoil. The Fed was supposedly created to stabilize the money supply, but economists have discovered that it has actually been LESS stable since 1913.
Since the actions of the Fed are secret and the government has no power over them the only way this can be stopped is to revoke the charter of the Fed, which was unconstitutional to begin with.
The long term effect of the Stock Market crash was followed by the Great Depression.
the stock market crash
Yes. The stock market crash did not cause the depression. Instead the economic crisis and the depression caused the stock market crash
In October of 1929 with the crash of the stock market.
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.
Many banks closed.
People were worried that the Stock Market crash put their money at risk which made them rush to the bank to pull out all their money and it made the banks lose all their money and forced them to declare bankruptcy and many ended up crashing.
The long term effect of the Stock Market crash was followed by the Great Depression.
Many banks were closed
Banks were one of the first institutions to feel the effects of the Stock Market crash because people feared for their money and rushed to withdraw their savings.
Banks were one of the first institutions to feel the effects of the Stock Market crash because people feared for their money and rushed to withdraw their savings.
Economy prices
the stock market crash
Yes. The stock market crash did not cause the depression. Instead the economic crisis and the depression caused the stock market crash
In October of 1929 with the crash of the stock market.
Many banks were closed. The country entered into a depression.
Many banks were closed. The country entered into a depression.