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AnswerThe reason for the stock marketcrisis is the credit crunch. People are short of money hence they are selling their stocks to raise cash.

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

Answer

Which 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.

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What was a long term of the stock market crash?

Many banks closed.


Why did stock market crash cause banks to fail?

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.


What was a long term effect of the stock market crash?

The long term effect of the Stock Market crash was followed by the Great Depression.


What was a long term affect of the stock market crash?

Many banks were closed


Why were banks one of the first institutions to feel the effects of stock market crash?

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.


Why were the banks one of the first institutions to feel the effects of the stock market crash?

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.


What was the cause of the stock market crash?

Economy prices


Which was a direct cause of the Great Depression?

the stock market crash


Do you think the nation would have experienced depression even if the stock market had not crashed?

Yes. The stock market crash did not cause the depression. Instead the economic crisis and the depression caused the stock market crash


Where when and why did the Great Depression begin?

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What was a long-term effect of the stock -market crash?

Many banks were closed. The country entered into a depression.


What was long term effect of stock market crash?

Many banks were closed. The country entered into a depression.