Stock Market Crash of 1929: From Upswing to Rock Bottom.
"We have hit rock bottom and are on the upswing," said Secretary of State, James Davis, after the crash. The Stock Market Crash of 1929 caused the United States to face many difficulties. Millions of Americans and even people across the globe were hit and somewhat effected by this tragic period in history. Many economists and historians believe the Great Depression was an effect of the crash, but the crash only signaled what was already the start of the Depression. The effects were seen in finances and unemployment, and because the stock market crashed, the economy of America plummeted. Many lost life savings, bankers and brokers had no money to loan so were forced to close, unemployment …show more content…
Since banks had invested people 's money on stocks and lost the money, the people did not trust the banking system and did not want to put their money into them. Financial institutions failed because people took out loans, lost it by speculating on stocks, and couldn 't pay it back. The bank had borrowed that money from its depositors and could not pay them the money that they deposited back, so the system failed. People didn 't trust the banking system to keep the little money they had left safe and chose to keeps it secure at home. Credit unions had no money to loan or invest and were forced to declare bankruptcy. The Federal Reserve Board played a big role in bank failures, because they cut interest rates to stimulate economic growth. Many people feared that their money was being misused (it was) so they went and withdrew all their money. The banking system was not ready for such heavy losses, had no insurance and had to close their doors to the public. By 1933, nearly half of the country 's banks had …show more content…
"At the peak of the Great Depression, there were more than 13 million people unemployed." (The Stock Market Crash and Beyond). Consumer 's low confidence stopped them from buying from factories which led to a massive lay-off. More and more of the American people relied on government and charities to feed their families. The government decided to take action and implemented some remedies to help the needy. The Federal Emergency Relief Administration allocated direct relief to thousands of people and families in the form of direct payments. Public Works Administration made jobs for skilled construction and factory workers on a wide range of projects. Civilian Conservation Corps provided men between the ages of 18 to 25 a job in camps managed by the army
"We have hit rock bottom and are on the upswing," said Secretary of State, James Davis, after the crash. The Stock Market Crash of 1929 caused the United States to face many difficulties. Millions of Americans and even people across the globe were hit and somewhat effected by this tragic period in history. Many economists and historians believe the Great Depression was an effect of the crash, but the crash only signaled what was already the start of the Depression. The effects were seen in finances and unemployment, and because the stock market crashed, the economy of America plummeted. Many lost life savings, bankers and brokers had no money to loan so were forced to close, unemployment …show more content…
Since banks had invested people 's money on stocks and lost the money, the people did not trust the banking system and did not want to put their money into them. Financial institutions failed because people took out loans, lost it by speculating on stocks, and couldn 't pay it back. The bank had borrowed that money from its depositors and could not pay them the money that they deposited back, so the system failed. People didn 't trust the banking system to keep the little money they had left safe and chose to keeps it secure at home. Credit unions had no money to loan or invest and were forced to declare bankruptcy. The Federal Reserve Board played a big role in bank failures, because they cut interest rates to stimulate economic growth. Many people feared that their money was being misused (it was) so they went and withdrew all their money. The banking system was not ready for such heavy losses, had no insurance and had to close their doors to the public. By 1933, nearly half of the country 's banks had …show more content…
"At the peak of the Great Depression, there were more than 13 million people unemployed." (The Stock Market Crash and Beyond). Consumer 's low confidence stopped them from buying from factories which led to a massive lay-off. More and more of the American people relied on government and charities to feed their families. The government decided to take action and implemented some remedies to help the needy. The Federal Emergency Relief Administration allocated direct relief to thousands of people and families in the form of direct payments. Public Works Administration made jobs for skilled construction and factory workers on a wide range of projects. Civilian Conservation Corps provided men between the ages of 18 to 25 a job in camps managed by the army