Economical Events That Lead Up To The Great Depression Essay -- essays

InformationIn the 1920s, things were really rocking in the US and around the world. The rapid increase in industrialization was fueling growth in the economy, and engine room improvements had the leading economists believing that the up rise would continue. During this boom period, wages increase along with consumer spending, and livestock prices began to rise as well. Billions of dollars were invested in the stock merchandise as stack began speculating on the rising stock prices and buying on margin. The enormous amount of unsecured consumer debt created by this speculation left the stock market essentially off-balance. Many investors, caught up in the race to guard a killing, invested their life savings, mortgaged their homes, and cashed in safer investments such as treasury bonds and bank accounts. As the prices continued to rise, some scotch analysts began to admonish of an impending correction, but the leading pundits largely ignored them. Many banks, raring(predicate) to increase their profits, began speculating dangerously with their investments as well. Finally, in October 1929, the buying craze began to dwindle, and was followed by an even wilder selling craze. The Great Depression was the worst economic slump ever in U.S. history, and one, which spread to virtually the entire modify world. The sock market crash was the start of an economical downturn. Numerous people bought their stocks on margin. They also purchased stock with borrowed money. When there was a drop in the st...