The Great Depression : A Worldwide Economic Downfall That Was Preceded By The Stock Market Crash Of 1929

1356 WordsNov 14, 20146 Pages
The Great Depression was a worldwide economic downfall that was preceded by the Stock Market Crash of 1929. The timing of when the event hit countries varied; for some it started in 1929 following the Stock Market Crash and for others didn’t begin until 1930 and lasted until the late 1930’s or early to middle 1940’s. It was the longest and most severe economic depression up to it’s time. The Great Depression affected many businesses, homes, families, people, and investors. During the 1920’s The U.S stock market surged and expanded reaching it’s apex. Soon after, in October of 1929, the U.S Stock Market crashed, which caused the Great Depression. Billions of dollars were lost as prices of almost every stock severely dropped. It wiped out many investors and companies. Some companies took twenty-five to thirty years to just rebuild back up to their point of success they had before the crash. There then began the slow and gradual improvement, because there was only was only one direction the stock prices could now go, and that was up. With stock prices quickly descending, the vast majority of investors and families ran to their banks to withdraw what they could out of the banks and their investments to save what money they could salvage before they lost it all. With that happening, the banks and stock markets became financially unstable due to vast amounts of money being taken out. The banks and U.S Stock Market soon after fell and stock prices were at an all time low.

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