Economical Events That Lead Up To The Great Depression Essay -- essays

InformationIn the 1920s, things were really rocking in the US and around the world. The rapid increase in industrialization was fueling growth in the economy, and technology improvements had the leading economists believe that the up rise would continue. During this boom period, wages increased along with consumer spending, and contain prices began to rise as well. Billions of dollars were invested in the stock market place as raft began speculating on the rising stock prices and buying on margin. The enormous total of unsecured consumer debt created by this speculation left the stock market basically off-balance. Many investors, caught up in the race to make a killing, invested their keep savings, mortgaged their homes, and cashed in safer investments such as treasury bonds and coin bank accounts. As the prices continued to rise, some economic analysts began to warn of an impending correction, n forevertheless the leading pundits largely ignored them. Many banks, eager to in crease their profits, began speculating dangerously with their investments as well. Finally, in October 1929, the buying craze began to dwindle, and was followed by an even unrestrained selling craze. The Great Depression was the worst economic slump ever in U.S. history, and one, which spread to virtually the entire industrialized world. The sock market crash was the start of an economical downturn. Numerous people bought their stocks on margin. They too purchased stock with borrowed money. When there was a drop in the st...