The Great Depression was a huge piece of our history here in the United States. It was a time of hope, struggle, and poverty. Some of the vital factors that contributed to the formation of the Great Depression include the rapid purchasing of stocks and the stock market crash, weak banking structure, and the care free spending among wealthy Americans. The Depression was not at all the outcome of one problem, rather multiple problems. Before the economy spiraled downwards it was in great shape. Tons of citizens around the nation were successfully investing in stocks and making a great deal of money. Everyone had visions and hopes of making money fast during the time and pursuing the American Dream. Like Document C states, “Everyone can be rich one day.” People began rapidly investing in stocks until a point in time came in late October where the stock market finally took a toll. Stock prices slumped 14,000,000,000 according to Document D and everyone was trying to get their money out of the banks, which didn't turn out so well for the majority of those who invested. The stock market crash played a major role in the Great Depression. On top of the issues involving the stock market, the banking systems weren't hot either. Banks during the time of the Depression tended to have a weak structure which ultimately led to a domino type affect. As said in Document L, when one bank would collapse, it would weaken all the other banks around it which was no help during such hard times. The weak structure within the banking systems played a serious part in putting the United States in a Depression. Before the Depression came in to its full affect, wealthy Americans were spending money left and right. At the time you could only buy so many expensive things until you would no longer need to spend money on wants again. That became a problem. As said in Document M, “when people have all they need, they will stop buying goods, and the economy will suffer a slowdown...
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