Small farmers were run out of their businesses and some were even ran out of their homes due to insufficient funds. Housing construction was getting higher and higher to be able to pay for it so by the 1920s it had fell drastically. People thought that borrowing money was going to be the “Gold Rush of Stocks” so many people were trying to get money. Rapid growth in bank credits and loans had a major effect into the fall of the Stock Market. Margin millionaires had lost all of their money by the time the Stock Market fell due to stocks being overpriced and people could no longer afford to pay for them. The Stock Market was so high that people were mortgaging their homes so they would be able to pour their money into the Stock Market (“What …show more content…
The companies they worked for couldn’t afford to pay for them to keep working there so many companies had to lay off a lot of people. Thousands of workers lost their jobs due to a loss in production. There were even low steel productions during the time which was one of the top producers of the United States and many workers were laid off from that job. For the people that were laid off it took Christians and dogooders for the poor and the ones who lost their jobs to keep from starving to death (“The Great Depression”).
There was nobody more hurt than the stock owners who had lost all their money that they had spent to buy into the stocks and that their houses were being foreclosed because they were pulling money off of their houses to be able to buy stocks. They could not afford to lose anything else because they have already lost so much. Some people lost cars, some houses, and some even lost everything due to the crash. Banks had to find some way to get their money back from all of the withdrawals (“What caused….”).
These reasons that led to the crash also led to the Great Depression. There were many people who suffered from the Stock Market Crash but none more that the stock brokers. The banks did what they could to try and calm people down and were successful to a point, but all of the foreclosures led to the Great Depression that was tough for Roosevelt to get through and it was hard to