USA HISTORY

Detailed explanation-1: -What caused the Wall Street crash of 1929? The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.

Detailed explanation-2: -Speculation And Overleverage In The Great Depression Rampant speculation led to falsely high stock prices, and when the stock market began to tumble in the months leading up to the October 1929 crash, speculative investors couldn’t make their margin calls, and a massive sell-off began.

Detailed explanation-3: -The market crashed from “over speculation.” This is when stocks become worth a lot more than the actual value of the company. People were buying stocks on credit from the banks, but the rise in the market wasn’t based on reality. When the economy began to slow, stocks began to fall.

Detailed explanation-4: -The stock market crash of 1929 had a devastating effect on the culture of the 1930s. As investors, businesses, and farms lost money, they started to shutter and lay off workers. Banks closed as well. The Great Depression began in the 1930s, leading to soup kitchens, bread lines, and homelessness across the nation.

Detailed explanation-5: -Many investors and ordinary people lost their entire savings, while numerous banks and companies went bankrupt. While historians sometimes debate whether the stock market crash of 1929 directly caused the Great Depression, there’s no doubt that it greatly affected the American economy for many years.