Causes and Consequences of the 1929 Wall Street Crash
- Created by: samoconnor1998
- Created on: 16-10-14 11:38
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- Causes and Consequences of the 1929 Wall Street Crash
- Causes
- the collapse of land prices in Florida
- too many goods being made and not enough people to buy them
- Farmers producedtoo much food and the prices of their crops gradually decreeased
- too many small banks - these banks did not have enough funds to cope with the sudden rush to take out savings,
- this happened in the Autumn of 1929
- Too much speculation on the stock market - the middle class had a lot to lose and they had spent a lot on what amounted to pieces of paper.
- Wall Street Crash of October 1929 was a massive psychological blow
- America had lent huge sums of money to European countries. When the stock market collapsed, they suddenly recalled those loans.
- This had a devastating impact on the European economy.
- The collapse of European banks caused a general world financial crisis
- Consequences
- On 24 October, 12.8 million shares were sold
- Thousands of people saw their fortune, or any money they had in the bank, disappear
- On 29 October 1929, 16 million shares were sold at very low prices.
- The Stock Market New York in had collapsed.
- Investors lost their money in the Crash and could not pay their debts.
- Many banks closed, ordinary people lost their savings
- people lost all hope for the future
- People could no longer buy consumer goods like cars and clothes
- workers were made redundant, other workers' wages was cut and unemployment rose to very high levels
- The great depression of the 1930's began
- Causes
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