Ask your own question, for FREE!
History 22 Online
OpenStudy (anonymous):

1. Did the stock market crash cause the Great Depression? Explain.

OpenStudy (nightcrawlers_):

second paragraph would help you out a bit. http://www.investopedia.com/articles/economics/08/cause-of-great-depression.asp

OpenStudy (anonymous):

Yes, - Within the 1920s, it became to a crucial point to where banks began to loan money to stock-buyers, all because stocks were the hottest commodity in the marketplace. The stocks themselves used as collateral. - If stocks dropped in value, investors could not repay banks, banks would be left holding near-worthless collateral. Banks would then go broke, pulling productive business down with them as they called in loans and foreclosed mortgages in a desperate attempt to stay afloat.

OpenStudy (anonymous):

Thank you

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!