Life During The Great Depression
Attalla Louis
U.S History
Mr. Laurneck
2/25/15
Opinion Essay
During the Great Depression there were many causes and effects which resulted in one of the greatest financial crises in U.S history. Many people who believed in the banking system had stored their money In a bank. Little they knew that the money which was supposed to be safe was being loaned to others. The attacks on America’s banks began immediately following the stock market crash of 1929. Quickly overnight, thousands of people began to withdraw their deposits from the bank. With no money to give back to the people, and loans were given to farms and businesses which eventually all went out and the American banking crisis began. The American banking crisis of 1933 …show more content…
When too many stocks were purchased, there was an influx in the number of stocks. This large quantity began to build up only to watch it burst and decline very rapidly. There were not enough stocks to meet the heavy demands that were imposed by the investors which lead to people losing money very fast with the inability to re sell their stock. People began to fear the stock market and it became very untrustworthy. Many rushed back to the banks relieved to recollect the money they still had. Indeed it wasn't available due to the high loan rate that the bank gave out, people were not able to pay banks back and and lead to the banks failing. Money began to become unavailable and scares to banks, investors, and the working class whom only stored there …show more content…
Other people see that the first issue, stock market crash of 1929 was the reason every thing lead to the depression. This is overlooked considering it was people's actions and their unwillingness to trust the stock market until it completely went down hill. Many stockholders quickly rushed to the conclusion that the stock will go up but they never thought that overconfidence through the banks loan system would hurt in the long run. To the stockholders the bankers are giving them money but, to depositors it was there money that was being loaned out. In this case if it wasn't for the banks encouraging the loans there would not be a huge stock pile on the stock market to bring it
U.S History
Mr. Laurneck
2/25/15
Opinion Essay
During the Great Depression there were many causes and effects which resulted in one of the greatest financial crises in U.S history. Many people who believed in the banking system had stored their money In a bank. Little they knew that the money which was supposed to be safe was being loaned to others. The attacks on America’s banks began immediately following the stock market crash of 1929. Quickly overnight, thousands of people began to withdraw their deposits from the bank. With no money to give back to the people, and loans were given to farms and businesses which eventually all went out and the American banking crisis began. The American banking crisis of 1933 …show more content…
When too many stocks were purchased, there was an influx in the number of stocks. This large quantity began to build up only to watch it burst and decline very rapidly. There were not enough stocks to meet the heavy demands that were imposed by the investors which lead to people losing money very fast with the inability to re sell their stock. People began to fear the stock market and it became very untrustworthy. Many rushed back to the banks relieved to recollect the money they still had. Indeed it wasn't available due to the high loan rate that the bank gave out, people were not able to pay banks back and and lead to the banks failing. Money began to become unavailable and scares to banks, investors, and the working class whom only stored there …show more content…
Other people see that the first issue, stock market crash of 1929 was the reason every thing lead to the depression. This is overlooked considering it was people's actions and their unwillingness to trust the stock market until it completely went down hill. Many stockholders quickly rushed to the conclusion that the stock will go up but they never thought that overconfidence through the banks loan system would hurt in the long run. To the stockholders the bankers are giving them money but, to depositors it was there money that was being loaned out. In this case if it wasn't for the banks encouraging the loans there would not be a huge stock pile on the stock market to bring it