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The stock market was at its worst on Oct. 29, 1929; otherwise known as "Black Tuesday." Earlier in the month, many people predicted that the stock markert was spiraling down to a bear market so they went to the stock exchange and tried to sell off all of their stocks. Some exceeded in doing so while others sold only half. Those who couldn't sell their stocks off would soon lead a life of suffering. After the crash, a vicious cycle followed.
Just like Black Tuesday, the Dust Bowl was also a major cause in what ignited the Great Depression. Not only did the Dust Bowl make the lives of the people homeless but it messed up America's economic cycle. After the Dust Bowl hit, many Americans found themselves lost and without enough money to buy food so they used credit. But with credit comes an interest fee and many people were not able to pay off their debt so many houses were on foreclosure. Prices of goods also fell and soon afterwards, banks started closing down.
Causes of the Current Recession
Causes of the Great Depression
Nowadays, the economy has decreased in its revenue because of the problems of houses that has been impacting the economy. People receiving easy credit, ARM, predatory lending, and fall in housing prices are just a few of the causes of the current recession. Easy credit helped build up the cause of the current recession by pointing out that anyone could get money (loans) and that led to debt because people coudn't pay the loans back.
Another cause of the current recession is because of deregulation. The government had stopped watching businesses closely and that led to the fall of the economy. The rise in oil prices and decrease in consumer spending were also causes of the current recession. These causes were piled up one after another for three years or so and now we find ourselves in a state of trouble.
