2006-12-10 04:27:25 · 4 answers · asked by g_tech94 1 in Social Science ➔ Psychology
The Federal Reserve handed out cheap credit during the 'Roaring Twenties', putting everyone in great debt. Then they tightened the grip of lending by raising interest rates, thus causing a slow in the economy which came to a screeching halt. People had to sell their stocks, bonds, and property to pay their debts, and this caused a huge upsurge in supply, causing the value of things to fall. Only the rich could buy up the stocks, bonds, properties, and they did so for pennies on the dollar. Many believe it was completely orchestrated by the Federal Reserve on purpose. The low value of the dollar today, is the only thing saving the USA from a depression, because foreigners can buy more American goods with their money. Meanwhile, many Americans are in debt from the 'Roaring Nineties'.
2006-12-10 07:35:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The stock market crash was caused by inflation and by people buying stocks on borrowed money. When the dust bowl started in the Midwest, it caused Market futures to collapse. When the stock market went, the economy went.
Unless you mean the great depression I suffered in 95. I could not get laid for about 6 months.
2006-12-10 04:40:45 · answer #2 · answered by Jimfix 5 · 0⤊ 0⤋
There was a huge stock market crash in 1929 or something like that, and everybody stopped buying things because they were nervous about their money. So like a chain reaction, everybody from painters to barbers to bank tellers lost money.
2006-12-10 04:36:00 · answer #3 · answered by whatevbookwrm687 4 · 0⤊ 0⤋
IMO one can label it or deal with it.
2006-12-10 04:32:45 · answer #4 · answered by GoodQuestion 6 · 0⤊ 0⤋