Wow! My stocks are booming. The stock market will make me a fortune.
My stocks just crashed! I can't believe I'm going to lose my house. It is all because of the Great Depression and the stock market crash this year.
The stock market crash of 1929 was one main cause of the Great Depression. This crash happened on "Black Thursday where 12.9 million shares were traded, and on "Black Tuesday" 16 million shares were traded. Part of the reason the market crashed in the first place was people used borrowed money from banks to pay for their stocks. When the stocks crashed, most of this borrowed money was lost causing banks to crash and the Great Depression to begin.
I didn't just lose my house, I also don't have a job to earn money.
Another cause of the Great Depression was banks. Since banks were continually losing more and more money, people began to lose trust in them. Many people and investors started to demand deposits in cash from the banks. Ban run swept the United States and caused thousands of banks to shut down. Hoover tried to solve this problem by giving government loans to banks to give to local businesses to hire more employees, but this attempt didn't work. As a result, the Great Depression continued on in full swing.
I just lost my bank to the Great Depression!
A third cause of the Great Depression was reduced purchasing across the country. Because people had less money to spend, they couldn't buy as much as they once did. This caused more people to lose their jobs as the production of more products reduced, especially in factories. Overall, less spending meant less money to pay people for employment which led to more people becoming unemployed. This chain reaction was another reason the Great Depression roared on.
I don't have enough money to buy food for my family. What will I do now?
How will my family ever survive this devastating time in America?