The Great Depression is probably one of the most misunderstood events in American history, and I’m going to be explaining what happened back when the Great Depression took effect on America. What started the whole Great Depression was the stock market crash, throughout the 1920’s the stock rose steadily which made it eventually take over and make the Great Depression have some major causes and effects to American people. Many Americans began to buy stocks and bonds; they also took advantage of the bull market. By then it was 1929 when about 4 million Americans owned stock markets. The Americans noticed that stock prices began rise, and speculation began to engage with the investors. By September the prices with the stocks began to fall, which was starting to cause economy trouble for the Americans. When October came around the corner prices fell dramatically, that’s when people called it the stock market crash, it then became known as the Black Tuesday. Almost everyone tried to sell their stocks so that they wouldn’t go into debt, by then no one wanted to buy their stocks because everyone was running out of money and didn’t have enough to afford stock markets. The economic times came at the worst, the stock market ended which then the Great Depression came along and lasted for 12 years from 1929-1941.
The causes of the Great Depression were very important and serious at the time. The farmers’ crisis suffered from a severe part of the economy, during World War 1 farmers took out loans and planted way more crops so that they can buy farming equipment. Many farmers lost their farms when banks went into foreclosure and took some of the money back and for their properties. Most banks began to fall when farmers began to not pay their loans. After the war was done, farmers demanded that they get their products which made the prices fall