7 History-Wall Street Crash

Question	Answer
What date was the wall street crash?	Thursday 24th October 1929
What were some of the reasons of the crash?	Tariff policies backfired and European countries did the same back. Long term problems in farming. Consumers didn't need anymore goods (OVERPRODUCTION). Credit was to easy to obtain (people relied on share prices to pay back). 50% of Americans on or below the poverty line couldn't afford consumer goods-limited market. Stock market relied on CONFIDENCE-when people began to worry there was a mass panic and millions tried to sell their shares as quick as possible. Banks were largely unregulated.
What were some of the immediate consequences of the Wall Street Crash?	Bankruptcy for those who borrowed money for shares. Homes were repossessed by banks. 100,000 companies went bankrupt. Many banks collapsed-Gambling on the stock market. Money for industries "dried up"-demand went down and production fell. Unemployment rose-12 mil in 1932.

Resource summary

	Created by melgallagher over 10 years ago