end of roaring 20s era

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  • end of an era
    • wall street crash 1929
      • undermines idea that 1920s were a roaring era
      • plumitting stock prices, black thursday, black tues, mark a very long Depression
      • Great Depressoin
    • many argue it was a long time coming
    • brokers sold stock to buyers who borrowed money to purchase more stock. when these began to fall, brokers demanded repayments but they were maxed out and had no way of repaying loans
    • buyers tried to repay by withdrawing their savings, which meant banks had little cash so put pressure on brokers to get their buyers to buy more loans
      • vicious cycle
    • businesses producing more products than American's can consume, workers laid off and less able to afford products that factories are producing
    • concentration of wealth on a few who in large invest their money rather than spend it
    • without spending money the economy comes to a halt
    • many cooperations heavily in debt, depression spreads internationally, many countries owed US money from war loans

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