CAUSES OF WALL STREET CRASH
- Created by: allybongo
- Created on: 29-05-19 13:44
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- Causes of the Wall Street Crash
- Overproduction
- Demand fell
- Workers were laid off
- More goods being produced than could be sold
- Land speculation
- Florida
- Land values rose
- People invested in new resorts and developments
- Demand and values fell, especially in Florida when a hurricane destroyed developments
- The bull market
- People bought shares on credit, 'buying on the margin'.
- If stock market collapsed- would have to keep paying for valueless shares
- Unregulated
- Insider dealing- make prices rise and fall artificially
- Left gullible investors with worthless stock
- Insider dealing- make prices rise and fall artificially
- People bought shares on credit, 'buying on the margin'.
- Weakness in the banking system
- Federal reserve banks monitored and regulated entire banking system
- Acted in own interests rather than the whole nations
- Small local banks- unprotected from collapse
- Federal reserve banks monitored and regulated entire banking system
- Overproduction
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