preview

The Wall Street Crash: Most Important Events Of 20th Century America

Decent Essays

The Wall Street Crash was one of the most important events of 20th century America. Many factors likely contributed to the collapse of the stock market. Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value of their investment, they also owed money to the entities that had granted the loans for the stock purchases), tightening of credit by the Federal Reserve (in August 1929 the discount rate was raised from 5 percent to 6 percent), the proliferation of holding companies and investment trusts (which tended to create debt), a multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer. The Stock Market

Get Access
Get Access