Essay On The Stock Market Crash

In October 1929 the united states was home to one of the largest stock crashes in history. This crash was caused by many things, I will be looking at the three main reasons below. Although only 16% of Americans owned stock at that point in time, the crash is usually considered the stating point of the great depression. The main reason the stock market crashed was mass panic and herd mentality. Investors had said that the market had been to good for to long and would crash soon. so some people started to sell their stocks, others thought that the people how sold the stocks knew something that they didn’t, so they sold their stocks as well. Soon everyone who owned stock in any company was trying to sell it, this drove stock prices very low very fast, people would sell there stocks for almost nothing because they thought the market would crash. Ironically by doing this they caused the market to crash. The reason the crash was so bad and lasted so long is debt. Many people saw that the stock market had been going up consistently for the past few years and decided that it would be easy to get wealthy by buying stocks and letting that value rise. As more people trying to exploit this it cause the market to grow even more, which in turn drove prices up even
It was now harder to get a loan for your house, because the banks had lost a lot of money when the market crashed. It was harder to find a job, because many companies had gone out of busines or didn’t have the money to hire anyone at the moment. It was even hard to find every day items like toilet paper or butter, because some of the manufactures went out of business and the ones that were left didn’t want to risk the money of developing larger facilities. As you can see the stock market crash may not have upset the economy on its own but it demoralized the people and stunted economic