How long did it thake the country to recover from the crash, and how did this recovery begin?
Please answer this question in like 5 sentences. please and thank you!
2007-02-05 08:30:18 · 6 answers · asked by MJ 1 in Business & Finance ➔ Investing
Try here.
2007-02-05 08:40:52 · answer #1 · answered by ? 6 · 1⤊ 1⤋
The answer is very simple. Because Taco Bell had not been franchised yet there was no way to get quality Mexican fast food to the masses. When people realized the demand for affordable Mexican food ( via a commentary on 20/20) they simultaneously sold all of their shares of non "Mexican fast food," stock. This created a supply of stocks greater than the demand for those stocks and the price plummeted. With the choices available now for investors, (Taco Bell, Taco Johns, Del Taco, etc.) You can be certain that a drop as substantial as was seen in 1929 won't happen again.
2007-02-06 01:27:35 · answer #2 · answered by The Man 5 · 0⤊ 0⤋
There is a lot of information available on this subject, search 1929 crash in wikipedia. To summarize your answer however, its very simple.
In the 1920's, after the first world war, people did not have a lot of capital to spend (cash). So investment companies let people borrow money to invest. In some cases they even let them borrow more money then they put down (+100%). When too much of this happened, a lot of people got scared and pulled their money out of the stock markets. When this occured, the majority of those people who borrowed more than 100% of their investment now owed even more money then they had originally. These people went bankrupt and made the depression even worse. It lasted until about 1935, but did not fully recover for many decades.
2007-02-05 10:52:09 · answer #3 · answered by Dase 2 · 1⤊ 1⤋
The answer is a bit long to retype here (and microsofts copy paste function does not work). See the url source listed below and scroll down to "Economic Fundamentals."
It took until about 1940 and the ramping up of factories to produce war material for England and for our entry into WW2 for the country to recover. The stock market did not rereach it high point until 1954.
2007-02-05 08:51:50 · answer #4 · answered by gosh137 6 · 1⤊ 1⤋
haha post war is correct.
Also many people began to sell their stocks because they believed that the riches from the 20's would end soon. blah blah blah. then there was more of the buying and eventyally it all went down since nobody was buying anything . yep
2007-02-05 08:34:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Democrats caused this problem as they do most problems in the US.
2007-02-05 08:32:43 · answer #6 · answered by post war 2 · 1⤊ 0⤋