the great depression
The Great Depression happened due to the crash of the stock market in 1929 and lasted until the 1930's. It was a huge economic depression for America. The stock market slowly started to crash on Black Tuesday and crashed shortly thereafter the next day. To buying stocks on margin and when the banks tried to make bank calls to get their money back, they couldn't at all. The bank had established a huge amount of their money into stocks too.
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They thought this would be a smart idea seeing how well people were doing. Then the stock market plummeted gravely and everyone tried to make bank runs to get the remaining money they thought they had left. Sadly, the banks were already closed, many were left out of work and jobless. Everyone blamed Herbert Hoover for their grave series of unfortunate events. First it was the stock market, then unemployment rose and then came the homeless. Men searching for jobs, the homeless creating Hoovervilles. It was all a mess, due to the FDR not insuring people's money. This event was important in American history because it showed how possible it was for a HUGE economic crisis to happen. The FDR insures people's money, and the stock markets are set up to where they should never face such a huge economic tragedy again.