Stock investing: The Effects on Banking and the US Economy
Late October 1929 the United States stock market crashed this formulated into the Great Depression. The U.S economy was hit hard. Everyday people invested in the market felt poor because of their significant lose in the stock market which led to the demand for goods to decline. Newly investments could not be financed through the sale in stock, because no one would buy the newly issued stocks. The banking system crumbled as major/minor banks try to collect loans made to stock market investors who had holdings at the time worth nothing. Through 1932-1933 Banks began to fail by severe numbers because of the lack of ability to raise new funds from the Federal Reserve System (FRS). (See
Late October 1929 the United States stock market crashed this formulated into the Great Depression. The U.S economy was hit hard. Everyday people invested in the market felt poor because of their significant lose in the stock market which led to the demand for goods to decline. Newly investments could not be financed through the sale in stock, because no one would buy the newly issued stocks. The banking system crumbled as major/minor banks try to collect loans made to stock market investors who had holdings at the time worth nothing. Through 1932-1933 Banks began to fail by severe numbers because of the lack of ability to raise new funds from the Federal Reserve System (FRS). (See