The Stock Market Crash

beSchoolInstructorCourseThe declivity grocery brushThe 1920s was a time of wild pansy and great prosperity in the United States . at that buns was an ontogeny of industrialization and there are upstart technologies such(prenominal) as radios and automobiles . The airflight was becoming widespread and because of these new innovations and technology , the prudence benefited ( linage grocery store Crash , n .pagMany investors rushed and bought galore(postnominal) shares and everyone thought that the furrows were safe and sound and there was hence an economic boom . There were some 400 millionaires instantly created from 1921 to 1929 (Stock grocery Crash , n .pagThere were sextette reasons why the Statesns invested in the Stock Market . The rising rake dividends were viewed by the people as an easy way to acquire ric h . There was an accession in personal savings . At this time , property in the banks are obtainable in a demoralise interest , there was indeed an easy money insurance policy in banks . While the companies ask to invest their over-production clams to new production , the Americans were encouraged to steal more declines . The lack of burgeon forth market regulation turned the sprout market in a pyrammid game . There were no limitations and buyers are stark to buy more and more stocks . The last reason was the psychology of consumption . The Americans believed that they were living in prosperity thus , they became starry-eyed (Schultz , n .pagIn September 29 , fluctuation of stocks began and the analysts thought that it was every(prenominal) temporary but On October 24 , 1929 , the people of America who owns stocks started to dump their shares and this idea of exchange stocks continued until Monday , October 28 and last , the following day , the gigantic Crash b egan (Schultz , n .pagWhile nearly people a! nd economists view the stock market chisel in of 1929 as the cause of the Great picture , the 1929 stock market crash was a result of a remiting economy .

The America consumers desire expensive items wish refrigirator , radios and automobiles went down and most Americans were satisfied in what they haveIn return , this actions of the consumers unnatural the copmpanies who produced these products and the over-production which happened earlier that year . The companies who invested more on factories and machineries lost their profits because the consumers were already satisfied . They rather state of affairs t heir money in stocks than have new items in their set up and this resulted to a slow economy which led to an unstable stock market plant CitedSchultz , Stanley K . American History 102 : American Civil contend to the Present . retrieved May 8 , 2008 . HYPERLINK hypertext move protocol /us .history .wisc .edu /hist102 /lectures /lecture18 .html http /us .history .wisc .edu /hist102 /lectures /lecture18 .html Stock Market Crash of 1929 . Stock Market Crash (2006 . retrieved May 8 , 2008 . http / wind vane .stock-market-crash .net /1929 .htm 1929 Stock Market Crash . retrieved May 8 , 2008 . HYPERLINK http / web .angelfire .com /co /pscst /stock .html http /www .angelfire .com /co /pscst /stock .htmlYour Name PAGE 2...If you want to get a skilful essay, grade it on our website: OrderCustomPaper.com

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