The Stock Market Crash And The Great Depression Essay

1278 Words Mar 31st, 2016 6 Pages
The stock market is a huge part of the world economy. It reflects the way businesses are doing and it affects almost every American household. When the market is up people are happy, when the market is down people are sad. In 1929 when the stock market crashed the Great Depression had been set in motion. When a disaster such as a stock market crash happens, it causes people to wonder, what happened and how can America prevent another crash from happening? In the year 2000 Kristen Brennan wrote a book about the 1929 crash and the Great Depression, she also talks about how to prevent another crash and references the causes of the first crash. It is rather ironic that the book by Kristen Brennan had been written eight years before the next major stock market crash. With people having knowledge of the mistakes that were made leading America into economic hardship, it makes people wonder. Were the causes of the two crashes related, if they are how did we not realize that another crash was on the horizon? What caused the crash of the 2008? There are many similarities and differences between the crash of 1929 and the crash of 2008, some similarities make Americans think, why did we let this happen to us, again? The failure of the banking system in the years leading up to 1929, contributed to the crash of 1929 we well as the Great Depression. Consumers were putting purchases on credit and the bank did not receive the money back that they were owed. Banks were down 50% (Brennan).…

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