Main Causes of the Great Depression
1.- Too much buying on credit, many people borrowed more money than they could repay. The banks and business were affected. Banks didn't have the money, and business who allowed credit did not get paid. This led to many people losing jobs which just made the problem worse
2.- West Virginian overproduced crops. This causes the prices to drop. This caused farmers to make less and therefore the couldn't repay debts and buy supplies ,
3.-Speculations in the stock market. People bought stock but only paid a small portion of it at the time of the purchase. Then when the stock went up they would sell it and make profit plus pay off the original price. This made the prices of stock go up,
In fact, banks put their costumer's money to stabilize to try to boom prices
4.- When the stock market crashed, the banks had invested large amounts of money into; therefore they lost all their money
2.- West Virginian overproduced crops. This causes the prices to drop. This caused farmers to make less and therefore the couldn't repay debts and buy supplies ,
3.-Speculations in the stock market. People bought stock but only paid a small portion of it at the time of the purchase. Then when the stock went up they would sell it and make profit plus pay off the original price. This made the prices of stock go up,
In fact, banks put their costumer's money to stabilize to try to boom prices
4.- When the stock market crashed, the banks had invested large amounts of money into; therefore they lost all their money