Why The Great Depression Was Inevitable? Essay examples

1231 Words Nov 16th, 2015 5 Pages
The Great Depression was inevitable because of the Government’s inexperience with the affair of the stock markets. Citizens could invest into companies by buying shares. A share is ownership of that company that would have a monetary value. If the share value went up then the stock owner would receive profit, and if the stock value went down the owner would lose their beginning investment. Another big problem with stock was Insider Trading. Two or more “insiders” would exaggerate the value of the stock making it seem more than it really was. They would then sell it to the public which means citizens were buying stock that didn’t have any initial value. In addition to Insider Traders, there were people buying on Margin. People would borrow money from the bank to be able to buy stock. They would take loans in hopes of the stock doubling so they could pay the bank loan off and still make profit for themselves. Furthermore, people thought that investing in stock would allow them to become rich quickly. That happened to some people, but those people were already well off; not too poor, but not rich. It was in their “American Dream” to become rich and the stock market was the “perfect” way. The funny thing is that the Government didn’t want to be involved with the stock market. They took a “Laissez-Faire” approach to dealing with the market. They didn’t want to regulate the market, so they basically allowed the stock market to get out of control. The infamous Al Capone didn’t…

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