How did the Stock Market crash affect Europe?
2007-01-04 13:43:21 · 3 answers · asked by conkers 1 in Education & Reference ➔ Homework Help
~The Great Stock Market Crash of 1929~
*Europe depended on the United States for trading purposes and many additional things; they felt the repercussions immediately.
*As a result, European bonds were contracting rapidly, and the banks were in trouble.
*Investment in European bonds now contracted sharply and swiftly, as banks that were "caught short" with too many of their assets invested in securities desperately tried to raise money.
*The American market for European imports also dropped sharply as the entire American economy went into shock; to compound trouble, Congress insisted on passing a high tariff law in 1930, against the advice of almost all economists.
2007-01-04 13:51:46 · answer #1 · answered by Anonymous · 0⤊ 0⤋
America had been helping Europe recover from WWI and because the market crashed the US didn't have the neccesary money to rebuild Europe. Also many things are exported/imported between America and Europe. When businesses failed in America they couldn't work with Europe thus causing the same problems in Europe. This mostly affected developed countries.
2007-01-04 21:52:35 · answer #2 · answered by allan r 1 · 0⤊ 0⤋
http://campus.udayton.edu/~102-14-2/abbynorris.htm
2007-01-04 21:48:12 · answer #3 · answered by Who Wants A Lobotomy 3 · 0⤊ 0⤋