There were so many reasons for the crash. Besides
the big brokers getting greedy, there were other
reasons. After World War II, that terrible war,
Farmers had been growing too much produce ofr
the soilders, and there was a lot of surpluse left.
Well, the farmers could not keep their prices high
because there was so much produce on the market
that farmers had to drive there prices down. This is
called too much supply and not enough demand.
This causes the price of goods to fall. That is called
deflation. Since the bull market was not selling
enough of its GDP, or in other words, its biggest
resource, the stock marlet begain to slide. October 29,
1929, known as Black Tuesday, stock prices fell quickly. A radio
stock went from 100 dollars to 28 dollars. When cost increase
across the board with no this is called inflation. When prices
decrease in all areas of the economy, this is deflation. This
decrease in worth in the stock caused stock brokers to decrease
their investments in American countries, thereby the value or
worth of the stock had decreased. Many people lost all their
money. Banks could not repay their customers because farmers
and other investors could not pay their loans. This sent America
into the Great Depression. Uncle Scotty from Texas says that my
ex- Beau should be careful he doesn't get himself into trouble.
Times are Changing!
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