The Financial Crisis Devastated The Real Estate Market

After the Stock Market crashed in 1929, the American economy was at its lowest point. The consequences of this crash were that the birth rate decreased, over 70,000 businesses were forced to close, and jobs became so limited that white workers started taking the undesirable jobs previously held by the African Americans and Mexicans. President Hoover’s voluntary system of associationalism and limited government did not help with the economic recovery.

When the real estate market hit rock bottom, trust was broken between the lenders and

The stock market crash of 1929 made an enormous impact on the economy of the United States as a whole, not just certain locations or a specific social class. This economic crisis led to rapid extremes which included mass unemployment, rates of marriage and income to drop immensely, and food was close to unobtainable. This change altered lives and working conditions of every person, men, women and the youth.

The Stock Market crash was something nobody expected, it came out of nowhere and striked fear into the american people. Many people started to panic which lead to a lot of poverty and people struggling economically to support their families. It all started on October 29, 1929 which today we know it as “Black Tuesday.”. “On Black Tuesday when the stock market crashed, billions of the people’s and Bank’s dollars were lost as the world went downward” ( Stock Market Crash). This was known to be the largest economic downturn in history. After all of the chaos with the economy the crash of the stock market led to the Great Depression. The Great Depression advanced the overall economic collapse of the U.S which lead to a lot of symptoms.

Businesses failed, and unemployment rose significantly. Banks failed and life savings were lost, leaving many Americans destitute. With no employment and no savings, a great many Americans lost their homes. The poor huddled in cardboard shacks while hundreds of thousands of the unemployed roamed the country on foot in vain hunt of employment.

Following the crash of the stock market, over 9000 banks failed to stay in business. This caused many fellow Americans to lose their savings they began to refuse to spend their money. In addition, due to businesses not having high value and banks shutting down, companies and industries began to fire their employees.

Besides ruining many thousands of individual investors with crash, the decline in the value of assets greatly strained banks and other financial institutions as well. These places made the same big mistake the American people did before the crash, they had too much confidence and was very naive about the current state of the economy. Due to their false confidence in the economy they made an overextension of credit. Particularly the banks that held stocks in their portfolios were affected. Many banks were so confident in the newly rising economy that they irrationally gave out loans to citizens who wanted to invest in stock even when the stock was not 100% secure which became apparent during the Stock Market Crash of 1929 (Nelson). The crash of the banks did not only

As a matter of fact, millions across the nation have lost their jobs, money, and homes. People across the nation started losing their jobs and can’t pay for their homes because of the market crash(Hayes). Now with no way to make money people can’t pay their bills. Banks stop loaning money and fail, this caused many citizens to lose all their money in a blink of an eye(Hayes). Millions now without jobs, money, and homes are forced to live in

During the Great Depression they had the Dust bowl that caused a big change for them. THe Recession had the housing bubble it was also called the National Housing Act that was passed by Congress in 1934 and set up the Federal Housing Authority (“HUD.Gov by the U.S. Department of Housing and Urban Development”). This agency encouraged banks, building and loan associations, etc. to make loans for building homes, small business establishments, and farm buildings. If the FHA approved the plans, it would insure the loan (“National Housing Act by John Simkin”). The Most of the borrowing that took place during the housing bubble was mostly mortgage debt. Low interest rates and the expanded availability of mortgage loan especially “subprime” mortgages which extended credit to borrowers with weak financial records—made home ownership more attractive and attainable for millions of Americans. With the expectation that home prices would keep rising, people not only bought more houses, they also bought bigger houses and accelerated renovations of existing homes (“Cause the great depression by Muddy Water Macro”) .The recession was an economic downturn which means nothing was an order doing this time.

The United States economy currently faces several problems affecting people throughout the country. These problems are ultimately affecting the growth of the United States. The growth of federal debt and deficit is seen as a major problem by the people of the United States especially when many people do not see the next president doing much more to improve it. The unbalanced labor market and immigration’s possible role in that has also been a discussion for many American citizens. It is important to also address the inequality regarding income. The deep-rooted trend of the rich getting richer and everyone else declining or remaining the same has created a lot of anger throughout the country. Lastly, the housing market has a huge affect on the economy considering housing is the biggest asset and one of the biggest drivers of wealth. Federal debt and deficit, immigration and the labor market, income inequality, and housing have all had negative effects on the United States economy today, while also affecting each other.

Businesses went bankrupt depriving people of their jobs and livelihood. The average working class and middle class American and their families were affected the most. Marriage and birth rates declined. The number of children placed on foster care doubled.

The Wall Street Crash of 1929 caused an economic depression throughout America that impacted on its society in many varyingly devastating ways. Some of which includes many Americans becoming poverty stricken, unemployed and suffering in terrible living conditions. However, to a lesser extent, the crash also laid the foundation for future prosperity and began many new optimistic development plans and employed many people on the rebuilding of the USA. Either way, the Wall Street Crash had a veritable impact on the lifestyle, livelihood and overall morale of the American people because it was so direct and so interconnected in its devastation. This widespread effect exacerbated the situation for most Americans, but more specifically the poorest

During the early 2000 's, the United States housing market experienced growth at an unprecedented rate, leading to historical highs in home ownership. This surge in home buying was the result of multiple illusory financial circumstances which reduced the apparent risk of both lending and receiving loans. However, in 2007, when the upward trend in home values could no longer continue and began to reverse itself, homeowners found themselves owing more than the value of their properties, a trend which lent itself to increased defaults and foreclosures, further reducing the value of homes in a vicious, self-perpetuating cycle. The 2008 crash of the near-$7-billion housing industry dragged down the entire U.S. economy, and by extension, the global economy, with it, therefore having a large part in triggering the global recession of 2008-2012.

The Stock Market Crash of 1929 was one of the most detrimental events in U.S. History, ensuing adverse effects which impacted millions of lives for the following decades to come. Following World War I and a period of remarkable prosperity in the twenties, the sudden crash was unanticipated by many and most were unprepared by the magnitude and its effects. Preceding the crash, the majority lived in riches and luxury as the stock prices skyrocketed, meanwhile ignoring the glaring warning signs. Once the market has crashed, many were forced into debt and became unemployed due to the economic skyfall. And although the crash likely did not carry its effects to current US citizens, it was one of the most monumental events that had many lessons

The crash was a very harsh time not only for the people who had been involved in the stock market. When the stock market fell and the banks wanted the loaned money back the speculators were struggling to scrape up enough to pay, but also ordinary people lost all they owned. Many investors who had gotten rich by shares lost everything. Statistics show that there was a spike in suicides in the years 1929-1930, a sign of many people being desperate as their household economy was ruined by debts to the banks. The Wall Street crash is still very relevant as it shows how greatly the people not even involved in the stock market are affected by it. A long term effect was that americans lost faith in the stock market. The general attitude towards buying shares was negative. In July after the crash the stock market index Dow had fallen by 90% from its highest in september 1929. No confidence in the market resulted in an unhealthy economy and it took 25 years for the stock market to recover.