3-2 Discussion Assignment: What Caused Black Tuesday?

American Stock Market Crush of 1929NameInstitutional AffiliationDate
American Stock Market Crush of 1929
The Great Depression was one of the worst economic hardships that have ever occurred in the United States History. There were many causes that led to the Great Depression. The three most important ones are the Stock Market Crash of 1929, American Economic Policies with Europe and the failure of banks in the United States CITATION Nat12 \l 1033 (National Humanities Center , 2012).
However, the failure of banks on stock matters was one of the reasons that greatly led to the Stock Market Crash of 1929. Under the Federal Reserve, the interest rates for the various commodities were lowered and, therefore, more people began to borrow money so that they can invest CITATION All10 \l 1033 (Allaudeen, 2010). The Federal Reserve, all of a sudden, raised the interest rates that led to severe deflation. It led to a drop in the price of commodities that were sold, consequently, it affected the stock market. People began selling everything that they had as the dollar grew stronger but the problem was that there was limited money supply thus making it difficult to expand the economy. There was a mismatch between the production and the consumption.
The stock market crash was also observed on 29th September 2008. It was one of the ever single day crash that occurred in the United St...