How Did The Great Depression Affect The Economy In Black Tuesday
By expressing their confidence in continued American prosperity, government financial experts and leaders such as President Herbert Hoover gave tacit approval to the bankers' and brokers' action. But in spite of all of the optimistic speeches, both government and business leaders knew by the fll of 1929 that a crash in the market was not only possible but probable. They had been afraid that talking about it would only start panic selling sooner. However, they could not postpone the inevitable.
The Crash
A downward trend started in Sep 1929 and continued steadily. And on October 1929, Black Tuesday, the American stock marktet had its worst day in history. Although stock prices rose again briefly, and the economic collapse was spread out over several weeks, October 29 is viewed as the beginning of the Great Depession in US. After the collapse of the stock market, more banks failed and were unable to give depositors the money from their accounts. AS a result, people panicked and withdrew their money from those banks that were still in …show more content…
Developments were made in industries such as industrial and agricultural. The bust in America and how it affected the world's economy especially NZ's defiantly overshadows NZ's up and down economy and life style in the 20s.
The first main reason for the boom in America was the WW one. WW one left America in a very good position. Since they only joined in 1917 they did not suffer the huge loss of life or the stripping of resources like what happened in France and Britain. Prior to joining America had loaned out a lot of money to France and Britain. France and Britain used this money to buy 17billion dollars worth of equipment, weapons and ammunition from America, a process known as a "one way trade". This was because America didn’t buy anything in return. After the treaty of Versailles
The Crash
A downward trend started in Sep 1929 and continued steadily. And on October 1929, Black Tuesday, the American stock marktet had its worst day in history. Although stock prices rose again briefly, and the economic collapse was spread out over several weeks, October 29 is viewed as the beginning of the Great Depession in US. After the collapse of the stock market, more banks failed and were unable to give depositors the money from their accounts. AS a result, people panicked and withdrew their money from those banks that were still in …show more content…
Developments were made in industries such as industrial and agricultural. The bust in America and how it affected the world's economy especially NZ's defiantly overshadows NZ's up and down economy and life style in the 20s.
The first main reason for the boom in America was the WW one. WW one left America in a very good position. Since they only joined in 1917 they did not suffer the huge loss of life or the stripping of resources like what happened in France and Britain. Prior to joining America had loaned out a lot of money to France and Britain. France and Britain used this money to buy 17billion dollars worth of equipment, weapons and ammunition from America, a process known as a "one way trade". This was because America didn’t buy anything in return. After the treaty of Versailles